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TRUST IN CORPORATE REAL ESTATE OUTSOURCING RELATIONSHIPS Trust is crucial for the success of outsourcing relationships between corporate real estate departments and service providers. Lack of trust is expensive. If corporate real estate managers do not trust their service providers, then they must expend more time and resources to develop detailed contracts with substantial penalties for self-serving behavior and devote even more time and resources to monitoring those provisions. Trust can help reduce costs and uncertainty. Our survey of corporate real estate managers finds that they are working with a primary service provider that they trust. This trust is based more on the service provider?s expertise and performance than on personal relationships. However, trust has not replaced detailed contracts and monitoring systems even for the outsourcing of basic tasks such as real estate transaction management. While the overall level of trust is good, there may still be room for increasing efficiency and effectiveness in outsourcing relationships.
Keywords: Trust, Service Provider Relationships, Outsourcing Relationships, Research Report, Georgia State, Ga. State
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