Corporate executives and managers are becoming painfully aware that an information technology strategy based solely on cost can prove inexpedient in todays global markets. The abundance of cheap labor and lower costs in foreign countries poses a for-midable challenge to US companies trying to beat the competition on price alone. The primary alternative is a strategy of differentiation; that is, competing along numerous parameters other than cost. Two possibilities include enhanced service and added product features. This article examines the traditional customer/vendor relationship and offers guidelines on establishing and maintaining a strategic rapport with information technology vendors.