Adding scope to an outsourcing contract, whether it occurs before contract end or at the scheduled time for renewal, is a tactic that makes the deal more mutually beneficial over time. Outsourcing Center studied 92 relationships to identify the drivers for adding scope. The study also identified a key factor in enabling the scope-expansion decision.
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.
BT was a plain old phone company. Then competition and the Internet changed telecommunication. Where was BT going to find the capital to fund the requisite new offerings? BT outsourced its HR to Accenture. Together the partnership transformed BT.
Today, ITO may involve customization or development. Outsourcing contracts must reflect this work. Attorneys at Baker& McKenzie discuss four areas of concern.