Outsourcing Lessons Learned: Engage in Shorter Deal Terms


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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
  • Analysis
    • Context
    • Analysis
      • 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
    • Key Facts
  • Recommended Reading
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