Gartner Research

Cost Optimization Techniques When Renegotiating Managed Service Deals

Published: 27 November 2014

ID: G00269643

Analyst(s): DD Mishra

Summary

Cost optimization remains one of the top three priorities in business and IT, and sourcing managers find it challenging to optimize sourcing costs in provider relationships. They can drive down costs by using outcome-based incentives and benchmarking when renegotiating contracts with providers.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Benchmark Costs and Services Before Renegotiating Price
  • Motivate Providers to Optimize Both IT and Business Costs
  • Renegotiate Existing Deals to Drive Cost Optimization

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