With the rate of technical and business change increasing through the foreseeable future, outsourcing contract renegotiations have become the new normal. Clients and providers must now develop outsourcing contract renegotiation skills as part of their core competencies in order to ensure the provider’s services are aligned with the client’s needs in terms of price and [...]
In June 2011 I was interviewing the COO of a California-based bank as part of an application strategy engagement. At the end of the conversation, he asked if Alsbridge had any data on the number of contracts in which the client repatriated all of the services. My answer was, “Off hand I don’t know, but [...]
Although outsourcing is considered a mature business strategy, many transactions either fail or must be renegotiated within the first two years. Inadequate provider selection techniques (often driven by clients and endured by providers) are significant contributors to such failures. This research paper explores the effects of sourcing failure, identifies several common mistakes found in typical [...]
Most companies that outsourced a portion of their finance and accounting (F&A) functions in the early to mid-2000s generated great savings but are probably overpaying now for the service levels they are receiving. More than $2 billion dollars of outsourcing contracts will expire in the next 12 months, and sourcing buyers need to be prepared [...]
The common wisdom is outsourcing is counter-cyclical, so it should be going gangbusters in the down economy. But that’s not what actually happened. What is going on? The international law firm Morrison & Foerster polled its clients. Partner Christopher Ford reports the findings.
Why do some buyers decide to renew their outsourcing contracts early before the term expires? Outsourcing Center studied 92 relationships to identify the drivers for early renewals. The study also revealed top qualities of providers appreciated by buyers in early-renewal deals.
During the eight-year relationship of Sovereign Bank and its outsourcing service provider, Trammell Crow Company (TCC), the bank grew dramatically from mergers and acquisitions. For TCC, which handles all the bank’s real estate services throughout its financial services market (the northeast and mid-Atlantic states in the US), the growth from 130 properties to more than 600 properties required a high level of flexibility and expertise.
Outsourcing continues to provide significant business opportunities for customers. But it also represents new risks. At the same time, the outsourcing market is continuing to evolve toward the newer terrain of business process outsourcing. Paul Roy of Mayer, Brown, Rowe & Maw discusses how to stay in the deal and out of court.
This paper discusses four guidelines to follow in improving an outsourcing relationship. The paper focuses on two case studies where the parties chose to stay involved and focus their efforts on redesigning their relationships.
In addition to trying to do business in a tough economy, BPO suppliers are facing another challenge: a wave of renegotiations. Buyers want to slim down their service offerings.
A wave of renegotiations hits the outsourcing world as companies try to reduce their costs.
From 1992 to 1994, many major corporations signed 10-year outsourcing contracts. The end of the tunnel is in sight, but now, the world is much different with the rise of the Internet. Robert Zahler, a partner with Shaw Pittman in Washington, D.C., says many of these buyers are beginning to gear up and decide what to do in this new business environment. They are wrestling with the choice of renegotiating with their current suppliers or putting the contract out for a competitive bid…
It’s rare for a customer to have the opportunity to renegotiate an outsourcing contract. Last year Tom Rideout rewrote two. Rideout, who heads technology delivery for Johns Manville, a building materials company in Denver, Colorado, was delighted with the opportunity to correct some problems with the original contracts..
Changes occur frequently in outsourcing relationships. And paying for results is one mechanism that can help customers achieve flexibility in the arrangement, says Eugene G. Lukac, CSC’s Principal for Application Value Management. Many outsourcing contracts do not focus on results, but focus on effort.
Flexibility in legal outsourcing contracts bears striking similarities to a team of professional athletes under the tutelage of a watchful coach.
As the outsourcing industry heads into 1999, Richard Raysman, an attorney with the New York firm of Brown Raysman Millstein Felder and Steiner LLP, expects to see not only larger transactions, but an expansion of the services being outsourced.
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