Legal Voice:Traversing through the many benefits that both single integrators and best-in-class providers offer, hard lines as to which methodology a company should choose to use are difficult to find and may be nonexistent. The bouquet of benefits and disadvantages of the two tactics weigh pretty evenly when placed upon the outsourcing scale.
The process of choosing a viable vendor from the thousands on the market can be chaotic. And for companies that aren’t faced with outsourcing issues every day, a lack of knowledge on the protocol for selecting and integrating an outsourcer can lead to problems…
Anticipating change and the likely need for future renegotiation can enable the parties to plan for it, and that preparation can provide a more cooperative environment for making changes.
Renegotiation has become a fact of life in long-term outsourcing contracts, and customers entering five to ten-year arrangements should be prepared for that.That’s the bottom line, according to Syd Hutchinson, senior consultant, COMPASS America, Inc. It’s unusual for a contract not to be renegotiated, he said. There’s no way you can see everything that far out, so you should go into these agreements prepared to renegotiate.
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