The　business　relationship　between　a　software　outsourcer　and　its　suppliers　is　gradually　moving　from　contract　relationship　to　partnership.　The　partnership　type　between　the　outsourcer　and　the　supplier　is　considered　as　a　key　predictor　of　outsourcing　success.　Although　several　studies　have　investigated　the　practices　and　benefits　of　building　partnership　from　an　outsourcer＇s　perspective,　few　of　them　have　studied　these　issues　from　the　supplier＇s　viewpoint,　especially　in　the　context　of　offshore　software　outsourcing.　Since　more　and　more　Chinese　software　companies　are　getting　outsourcing　subcontracts　from　abroad,　it　is　important　to　investigate　the　effect　of　business　relationship　on　their　performance,　and　to　identify　possible　enhancements.　Our　study　has　collected　data　by　a　questionnaire-based　survey　from　53　finished　projects　in　41　Chinese　software　suppliers.　Twenty-six　of　our　investigated　suppliers　claim　to　have　contract　relationship　with　their　outsourcers　and　the　remaining　27　think　they　have　partnership　with　outsourcers.　Results　from　our　study　show,　however,　that　1)　processes　and　methods　used　by　suppliers　to　solve　conflicts　with　outsourcers　do　not　follow　their　self-claimed　contract　relationships　or　partnership;　2)　there　is　no　significant　correlations　between　the　type　of　relationship　and　the　success　of　outsourced　projects;　3)　more　personnel　with　proper　language　and　communication　skills　need　to　be　educated　in　order　to　facilitate　Chinese　companies　to　build　and　maintain　a　proper　partnership　with　their　outsourcers.　©　2007　IEEE.