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Acing Contract Renegotiations
When to Hold ‘Em, When to Fold ‘Em and Other Useful Tips

By Alsbridge, Inc.

No matter how well you plan, there will always be things you will want to change once you get into your outsourcing contract deal. Sometimes these will be relatively minor issues that can be dealt with through change control. And, of course, there is always the opportunity to make changes once the term runs out. But what happens if the changes you want amount to a renegotiation of your provider contract? This article looks at the key issues of both mid- and end-of-term contract renegotiation and suggests ways in which your negotiating position can be improved.

End-Term Contract Renegotiation

What should you do at the end of an outsourcing contract term? The easiest thing would be to merely roll the deal forward. However, in doing so you may miss a great opportunity to look afresh at all aspects of the deal with the ultimate advantage at your disposal – competition. At this stage there is nothing to lose, and everything to be gained, from running an open competition to reassessing the deal and the market. However, this all depends on one key assumption - that it is a practical proposition, operationally and financially, for you to move from your existing supplier or to bring the work back in house. (By the way, this is also an important factor in getting other suppliers interested in bidding. Why would they invest time and effort to submit a proposal if it appears you can't move anyway?).

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