If you are a governance professional, or a member of an account management team, and wonder why innovation is seldom produced in outsourcing relationships despite lofty aspirations, then read on. This POV discusses the top three impediments that stand in your way. They include misaligned relationships between the two parties, lack of a programmatic approach to innovation, and inadequately skilled or experienced resources. Unless these three are addressed, the gap in expectations, the absence of a systematic approach, and not having the right people will derail the ability to identify, create, and execute new solutions.