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The Way You Pay Could Cause Your Outsourcing Deal to Fail
By Paul Cervelloni, Director, Alsbridge, Inc.
Research continues to indicate that clients embrace outsourcing strategies to achieve, among other goals, a reduction in total cost of ownership. It makes sense then, that your clients will negotiate hard for low prices - giving great weight to the issue of 'how much you pay.'
However, all too often Alsbridge sees a lack of attention placed on the commercial price mechanisms that determine 'how you pay.'
In this article, we contend that commercial price mechanisms that do not pragmatically and contractually align relationships may themselves become causes for contract failure. In other words, how you pay is as important as how much you pay.
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