Gartner Research

Outsourcing Trends 2013: Use These Vendor Selection and Contract Techniques to Avoid Deal Disaster

Published: 11 February 2013

ID: G00239096

Analyst(s): William Maurer

Summary

This research is part of the "Gartner on Outsourcing, 2013" series of notes. Today's sourcing managers must write contracts that allow for agility, benchmarking and bundled solutions. Sticking to the same approaches that have worked in the past could have disastrous consequences in the future.

Table Of Contents
  • Impacts

Analysis

  • Key Challenges and Trends in 2012
    • New Solutions Bring More Vendors and Unique Pricing Models to the Market, Which Brings a More Complex Vendor Selection Process to Sourcing Buyers
    • Driving Provider Behavior Has Become More Challenging Due to the Increase In Cloud-Based Delivery Models, Point Solutions Within an IT Tower and End-to-End Requirements That Lead to Standardized, Bundled Solutions
    • Customers Reap Noticeable Cost Benefits From Industrialization. However, This Has not Led to Significant Service-Provider Growth, Making Further Cost Optimization Initiatives Necessary for Buyers
  • Outlook for 2013

Impacts and Recommendations

  • Industrialized and utility models will increase rapidly during 2013, so contract managers must update their approach to contract language and agility
  • More deals will include bundled services that allow buyers to achieve end-to-end service solutions
  • Overall deal costs and pricing models have forced contract managers to include a benchmarking requirement in all outsourcing contracts

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