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 Contract Renegotiation: Timing is Everything
White Paper |
Category: Negotiations / Renegotiations Benchmarking IT Infrastructure & Applications...
The consequences to a buyer company that fails to renegotiate certain provisions of its outsourcing contract at the right time can be devastating. Right now is the right time for many organizations.
As the outsourcing services market continues to undergo significant changes in service provider mix, technological advances, and price drops, more and more outsourcing buyers are entering into the contract renegotiation process wholly unprepared. As a result, many leave significant financial savings on the table and/or structure sub-optimal deals that don’t adequately serve their needs or deliver real value.
Contract renegotiation is not a cure-all for all outsourcing ills and is not a replacement for maintaining a healthy relationship with your service provider. At the end of the day, both sides of the table are looking for a positive outcome and a relationship that delivers value. However, understanding how and when to renegotiate your outsourcing agreement and then taking the time to prepare for your renegotiation is fundamental to success. Start early to make time your asset, not your enemy.
A Better Way to Cut Costs with Telecom Expense Management
White Paper |
Category: Negotiations / Renegotiations Network Services Process Transformation
Once upon a time, there was one phone company and all the rotary dial phones came in one color: black.
Back then it was easy to decipher your Bell telephone bill. Today, however, few companies have the time, expertise, specialized systems, applications or processes to handle their ever more complicated telephony bills, which have become an important place to save money. The difficulty becomes geometrically more challenging for corporations with thousands of phone lines, data lines, switches, cell phones and tablets for which it now must pay.
Are you paying your cell phone or landline provider too much? How do you really know? Here's how one company took a call for action.
Drafting ITO Contracts in the Cloud
White Paper |
Category: Strategy & Business Case Negotiations / Renegotiations Cloud Computing...
Alsbridge predicts Cloud-based delivery of applications will account for half of the market within 5 years and outsourcing e-mail as a service will be routine within 2 years.
The key to all successful outsourcing relationships is the quality and flexibility of the commercial agreement between the customer and the supplier. An IT outsourcing contract can be anything from a highly complex and weighty document to a shorter ‘consumer’ style arrangement, but either way it is crucial to all outsourcing relationships as it provides the legal framework between the organizations involved.
As with contracting for traditional ITO services, a detailed understanding of service provision and delivery is vital before entering into Cloud-based contractual commitments.
However, as contracting for services in the Cloud becomes the new standard, it will require a different set of contracting principles and a new basis for customer and supplier relationships. It is a case of adapt or die; those slowest to market will be left behind.
An IT outsourcing contract must stand the test of time, which means that it continues to meet both parties’ expectations during the lifetime of the ITO contract, not just at the start or key milestones.
This paper defines the key principles for what constitutes a ‘good’ contract and deal management organization in the current outsourcing landscape, and addresses the key challenges for ITO contracts in the future Cloud-based, on-demand IT and business services environment.
The Truth about the Three R’s of Outsourcing: Repatriate, Re-compete or Renegotiate?
White Paper |
Category: Negotiations / Renegotiations IT Infrastructure & Applications Outsourcing
In June 2011 I was interviewing the COO of a California-based bank as part of an application strategy engagement. At the end of the conversation, he asked if Alsbridge had any data on the number of contracts in which the client repatriated all of the services.
My answer was, "Off hand I don't know, but I will find out."
After asking several fellow consultants, I found little or no useful data that would provide a fact-based answer. So, I started digging.
The facts uncovered several "AH HA's!" about the keys to success in outsourcing and the truth about the three R's of outsourcing.
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