Award winning benchmarking, sourcing and transformation advisory firm,
Alsbridge, Inc., today announced release of its latest report – Top Four
Factors Impacting Your Outsourced Applications Contract- which provides a
framework for buyers to use to proactively design, negotiate, and manage
Applications Outsourcing contracts.
The dynamics of global sourcing have significantly impacted Application
Outsourcing (AO) in recent years. “Buyers of application outsourcing services
need to obtain a global view of the sourcing economy and understand its
overarching influences,” says Dieter Thompson, President Alsbridge
Inc.,
The top four factors outlined in this white paper include economic forces,
labor market factors, scope variables, and rate analysis. According to the
report, economic forces influence outsourcing rates during negotiations and
throughout the duration of the relationship. Labor market factors influence
labor rates within a specific country, and in larger countries, like India,
they can affect rates on a regional level within the country. Buyers and
vendors should stay abreast of these labor market factors to effectively
negotiate, manage, and deliver AO solutions. While the largest cost components
of labor rates are staff compensation and labor-related costs (e.g., taxes and
benefits), additional scope variables affecting labor rate pricing are
discussed in detail in the report. Primary price drivers for applications
outsourcing are: country, standard market roles, and years of experience (YOE):
Country; Standard Market Roles; Country Years of experience (YOE).
Alsbridge CEO, Chip Wagner says, “Dynamic market conditions for
application outsourcing services require buyers and vendors to monitor labor
market factors, outsourcing contracts, and service delivery to optimize the
cost/delivery performance.” In order to meet initial deal objectives,
application outsourcing efforts continue to result in complex business
transactions requiring continual oversight by customers.
For further details on the above four factors, download the complete
report Top
Four Factors Impacting Your Outsourced Applications Contract.
About
Alsbridge Inc.
Alsbridge is a global consulting firm that helps companies transform and
optimize the way they purchase, manage and leverage technology and business
processes. We have over 175 team members on 4 continents serving
over 200 clients a year including more than 40% of the Fortune 500.
Alsbridge has helped hundreds of companies reduce costs and get more value from
their vendors. Our experienced consultants leverage proprietary tools and
information databases to identify and engage the optimal vendors for your
situation, negotiate best practice terms at fair market prices, and improve the
way you work with your service providers. Alsbridge clients utilize the
most cost effective and value added sources globally for IT infrastructure
services, network carrier services, hardware and software, application support
and development, business processes and cloud services.
EDITORS/WRITERS: Journalists interested in covering the
above topic or interviewing one of our SMEs please contact:
Scott Tims
Office: 214-378-7970 ext. 278
stims@thepointgroup.com
www.alsbridge.com
