A partnership agreement venture capital involves creating a new company to exploit a perceived business opportunity. The staff and customer assets are transferred to this venture capital company instead of the service provider. The goal will not only improve service transferred, but what is even more important, the development of products and services that can be sold to third parties.

The client and service provider share the benefits of the new company. Thus, the service provider can fully exploit its potential for development of systems, while the client shares the costs of developing new software products.

At the same time, the venture capital company benefits from the expertise held by the client on the market. Some products and services venture capital company have been developed through opportunities that have emerged from total outsourcing arrangements in place