Gartner Research

Organizations Must Link Innovation With Pricing in Outsourcing Deals or It Won't Happen

Published: 22 April 2014

ID: G00262381

Analyst(s): William Maurer , David Ackerman


Innovation drives business satisfaction as organizations assess their outsourcing deals — but does not come free of charge. Sourcing managers must drive innovation via their service providers by following the innovation "cycle of life" and avoiding the "cycle of death" as analyzed in this research.

Table Of Contents
  • Key Challenges



  • The Associated Costs of Innovation
  • Develop a Formal Governance Process for Innovation Delivery and Pricing Changes
  • Organizations Must Be Proactive in Getting an Effective Approach to Innovation in the Contract
  • Innovation Must Address Both Continuous Improvements and Breakthrough Innovation

Case Study

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