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Redefine Your Outsourcing Contract through Renegotiation
By Alsbridge, Inc.

In a year when a record number of outsourcing contracts are due to expire, the profile and significance of outsourcing contract renegotiation is set to rise. Although re-tendering continues to get all the headlines, on the ground dozens of forward-looking firms are turning to outsourcing contract renegotiation to refine and extend their sourcing strategies. As deals get shorter, and as firms get better informed and more sophisticated in their outsourcing thinking, look out for a silent revolution in attitudes. Outsourcing contract renegotiation will no longer be a niche activity; it will emerge as a central skill for all businesses engaged in outsourcing.

Outsourcing contract renegotiation is a dialogue to agree to major changes with your existing outsourcing provider, and represents the first step in trying to redefine an outsourcing initiative and stops just short of the 'nuclear option' of re-competition i.e. going back to the market to re-tender your requirements in the marketplace. Given the massive cost and disruption that re-tendering can entail, contract renegotiation is usually the smarter way to fundamentally redefine an outsourcing contract. This article discusses the driving forces behind the growing importance of outsourcing contract renegotiation, and how you can take advantage of it to fundamentally redefine your outsourcing initiative.

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