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How are sourcing contracts being affected by the recession?

Published by: Ovum Plc

Published: Apr. 29, 2009 - 13 Pages


Table of Contents


Executive summary
In a nutshell
The Ovum view
Key messages/recommendations
How relevant and valid are the original contract’s fundamentals in today’s environment?
Step back and understand the fundamentals of the initial engagements
Getting savings out of existing contracts are easy - everyone else is doing it
Negotiation discussion comes into its own
Negotiation
Is the incumbent the best option, or should we work with someone else?
How strong is the relationship?
Who is driving this disruption?
Flexibility is critical for a successful outcome - but how flexible?
The need for flexibility
How applicable is flexibility when addressing outsourcing relationships and, more importantly, contracts?
Legal flexibility driving better business outcomes
What a great time to drive through some real cost savings
In conclusion
The most successful changes involve a strong relationship and governance model

Abstract

What is becoming apparent is that outsourcing is a key component in the battle against the recession, but should not be seen purely as a short-term cost-cutting exercise.

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