Why are collaborations required between different organizations? The obvious answer is that one organization cannot carry out all functions. That is one of the most important reasons, why companies collaborate or tie-up together. For instance, while carrying out an expansion plan, a company may come to the realization that they do not possess the required staff, resources or the infrastructure to carry out the task at hand. This is when a company may choose to look for a trustworthy partner to help them through an understanding that it may benefit both. This can also help them to understand each other’s shortcomings and can bring fresh ideas and perspectives on how to improve the processes, problems and solutions. When your company is embarking upon a project, there might be shortage of expertise or talent available in-house. At such times, it makes more sense to create a partnership rather than recruiting. And finally, companies may come together to collaborate in order to carry out a co-branded promotion that provides discounts on complementary products and services. This is more in connection to marketing and advertising than human resources.