[2] The Vested approach is firmly rooted in relational contract theory, which was originally developed in the United States by the legal scholars Ian Roderick Macneil and Stewart Macaulay.
The vested formal relational contract process includes steps to lay the foundation and helps contracting parties stay in continual alignment by establishing a “partnership mentality” which engenders an environment of mutual trust, a shared vision and objectives, adoption of guiding principles, and alignment of expectations and interests.
The contract itself follows five rules based on the Tennessee research on the topic that began in 2003: The parties must agree upon one or more "desired outcomes" which can be objectively measured to determine if the relationship is successful.
[7] By sharing their expertise and aligning their goals, both parties are able to drive innovation, adapt to changing needs and mitigate risk while working towards mutual success.
[1] Vested outsourcing applies in a variety of industries and has been adopted by companies like Procter & Gamble, McDonald's, Microsoft, Dell and FedEx.