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Long-term outsourcing deals (generally more than five years) can eventually limit price-competitive flexibility, technology improvement and service excellence. IT leaders and sourcing managers must understand the relative impact of term lengths on current and future performance objectives.
Table of Contents
What You Need to Know
- Clients Need to Move Away From the Traditional Outsourcing Approach
- Understand the Potential Benefits of Long-Term Deals
- Understand the Limitations of Long-Term Deals
- Most Seven- to 10-Year Deals Require Renegotiation After About Three Years
- Deal Terms of One to Five Years Can Balance Flexibility, Cost and Functionality