Technology executive connections. Managing the risks and rewards of collaboration.

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Given the growing complexity and interdependency of technology products, it is increasingly difficult for any single company to be able to deliver all things to all customers. This underscores the need for formal kinds of collaboration with third parties. But collaboration can introduce a new and broader set of business risks.

The survey shows how technology companies can manage the risks to reap the rewards of collaboration. PwC interviewed over 150 senior technology industry executives worldwide, and conducted in-depth personal interviews with industry leaders and PwC subject matter professionals.

The report features five observations:

• Collaboration is becoming a core competency. Technology companies recognise the benefits and collaborative arrangements are on the rise.
• External collaboration introduces significant – but manageable – risks. IP management, data security and reputational risks are the biggest concerns.
• The most critical collaboration is with (or for) customers. Customer service is the primary motivation behind most collaborative arrangements.
• Collaboration opens up emerging markets. Although considered high risk, a local partner is viewed as an essential component in an unknown market.
• Collaboration is in its infancy. Executives recognise they have a way to go towards making the most of collaborative arrangements.