Gartner Research

Key Factors That Can Make or Break Your Managed Services Outsourcing Deal

Published: 19 February 2015

ID: G00274194

Analyst(s): Jim Longwood , Kris Doering , Gilbert van der Heiden , Daniel Barros , William Maurer , David Ackerman , DD Mishra , Frances Karamouzis , Ruby Jivan

Summary

By 2016, 70% of CIOs expect to change their mix of sourcing providers to get more business value and innovation from new partner relationships. Sourcing managers must consider using the managed services approach to outsourcing, and focus on the key success factors to realize sourcing objectives.

Table Of Contents

Analysis

Research Highlights

  • Defining and Documenting a Clear SOW
    • Gartner Resources for SOWs
  • Selecting the Right SLAs, KPIs and Measurable Metrics
    • Gartner Resources for SLAs and KPIs
    • KPIs for Quality of Code — Enhancements and Development
  • Negotiating Mutually Beneficial Terms and Commercial Structures That Match Outsourcing Objective
    • Service Penalties and Earn-Back (SP)
    • Termination (Te)
    • Key Personnel (KP)
    • Innovation Plan (IP)
    • Benchmarking
  • Dedicating Sufficient Time for Transition and Steady State
  • Ensuring Optimal Change Management and Assessing Retained Organizational Competencies

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