It’s time to renegotiate your outsourcing contract. Are
you prepared?
According to Alsbridge Inc. CEO, Ben Trowbridge, many companies are not.
“The outsourcing contract renegotiation process is extremely complex. In our experience, clients who are unprepared almost always leave significant financial savings on the table or structure a deal that leads to future relationship issues and service disruptions. The best way to avoid these consequences is to understand how and when to renegotiate your outsourcing agreement.”
Trowbridge says the key to a successful renegotiation lies in Alsbridge’s 5-step approach:
A detailed white paper titled 5 Steps to Renegotiating Your Outsourcing Contract offers advice for service clients preparing to take a seat at the negotiating table.
Is It Time to Renegotiate?
Timing plays a significant role in the renegotiation process.
Outsourcing contract renegotiations can be invoked by a variety of situations – by the service customer, or the service provider; in a Business Process Outsourcing (BPO) or an Information Technology Outsourcing (ITO) deal; towards the end, or part way through a contract lifecycle; in a disputed situation when service and/or financial performance has become a problem, or by a joint agreement in a cooperative relationship.
The most common triggers for renegotiating a outsourcing agreement include:
“At the end of the day,” Trowbridge explains, “both sides of the table are looking for a positive outcome and a relationship that delivers value. Taking the time to prepare for your renegotiation is fundamental to success.”
Access the full white paper, 5 Steps to Renegotiating Your Outsourcing Contract.
About
Alsbridge
Alsbridge, Inc. is an
award-winning global advisory firm that has redefined the way companies reduce
costs and improve back office operations. Our proprietary benchmarking
tools and data resources enable clients to utilize the most cost effective and
value added sources globally for information technology, business processes and
telecommunications networks. Through a combination of internal
optimization and outsourcing, our clients achieve cost savings that support
their strategic business objectives.
Founded in 2003, Alsbridge is the proven,
effective difference. The company’s web site is: www.alsbridge.com.
