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Why are Organisations Signing Outsourcing Contracts with Renegotiation in Mind?

Published by: IDC

Published: Mar. 31, 2008 - 7 Pages


Table of Contents


Table of Contents

IDC Opinion

In This Insight

Situation Overview

Highlights

Table: Examples of Renegotiated Outsourcing Contracts in 2007

Table: Motivation Factors for Renegotiating Outsourcing Contracts

Discrepancy Between Expectations and Delivered Outcomes

Inability to Meet the Cost-Reduction Expectations

Changes in Business

Relationship Issues

Contract Expiry

Future Outlook

What Will Happen?

Essential Guidance

Learn More

Related Research

Abstract

This IDC Insight investigates the reasons why organisations are over cautious and create leverage through the renegotiation process, and blue-sky clauses within contracts.

IDC defines renegotiations as any significant change to the contract prior to its natural expiration. IDC does not consider renegotiation to include changes that are administered through the governance process ? change management. Renegotiation also does not include renewals that occur at the end of the term of the contract.

The sources of information include data from outsourcing and other services surveys, IDC contracts database, and information captured from in-depth interviews across various organisations.



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