Gartner Says Enterprises Must Sign Outsourcing Contracts With Provisions That Allow for Renegotiating Opportunities
Analysts Discuss How Companies Can Build a Successful Outsourcing Relationship During Gartner Symposium/ITxpo 2004
SAN DIEGO, CA. March 30, 2004 — Most companies sign with an outsourcing provider to lower expenses. However, enterprises must have clauses to renegotiate these contracts as the enterprise's objectives evolve, according to Gartner, Inc.
Gartner analysts said that 85 percent of all outsourcing contracts signed since 2001 through year-end 2004 will be renegotiated within three years of signing because the original contracts did not serve the enterprise's long-term objectives.
Gartner analysts presented these findings today during Gartner Symposium/ITxpo 2004, which is taking place here, through April 1.
"The outsourcing deal must be flexible so that as business goals change, the deal will also change," said Linda Cohen, managing vice president for Gartner. "Successful outsourcing depends on a perfect balance of trust and control between both parties. Long-term outsourcing deals are usually constructed to rely on control rather than trust. However, organizational agility and the ability to create value requires flexible thinking and creativity that goes beyond process excellence."
A perfect balance of trust and control is a powerful foundation influencing the long-term success of strategically important business deals.
"By managing for continuous change, enterprises and their service providers can move toward the combination of cooperation, flexibility and control that will become the centerpiece of successful long-term relationships," Cohen said.
Gartner Symposium/ITxpo is the IT industry's largest and most strategic conference, providing business leaders with an insightful look at the future of IT. For more than 10,000 IT professionals from the world's leading enterprises, Gartner's annual Symposium/ITxpo events are key components of their annual planning efforts. For more information about Gartner Symposium/ITxpo 2004, please visit www.gartner.com/symposium or call 1-800-778-1997.
About Gartner:
Gartner, Inc. is the leading provider of
research and analysis on the global information technology industry. Gartner serves more
than 10,000 clients, including chief information officers and other senior IT executives
in corporations and government agencies, as well as technology companies and the
investment community. The Company focuses on delivering objective, in-depth analysis
and actionable advice to enable clients to make more informed business and technology
decisions. The Company's businesses consist of Gartner Intelligence, research and
events for IT professionals; Gartner Executive Programs, membership programs and peer
networking services; and Gartner Consulting, customized engagements with a specific
emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in
Stamford, Connecticut, and has 3,700 associates, including more than 1,000 research
analysts and consultants, in more than 75 locations worldwide. For more information,
visit www.gartner.com.
