The article explores how companies negotiate contracts for procurement outsourcing. They compare two methods: direct sourcing (buyer deals with supplier and agent separately) and agent sourcing (buyer lets agent handle everything). By using a bargaining framework, they found that the buyer's bargaining power determines which method is preferred. If negotiating prices only, buyer's preference depends on agent's power over supplier. Surprisingly, all parties may prefer the same method. Ultimately, it's best for the buyer to negotiate prices only.