The outsourcing market is fast-evolving, and outsourcing transactions are complex, both in terms of the process of negotiating them and the level of commercial understanding required, and the delivery of services over long periods, often years.
As a result, too often a customer will stay with its existing supplier with a little-changed agreement. Added to that, these deals increasingly do not deliver on their promise because the process by which they are drafted, negotiated and implemented is dominated by traditional law firm and advisory approaches and the ‘noise’ of minor issues that arise from the use of standard templates.
We all want increasing value, every day. The early lure of outsourcing was that expert suppliers could deliver this for all of your back office services. The reality hasn’t been quite so straightforward.
Cost and efficiency savings remain a significant driver for any outsourcing arrangement, but outsourcing is also driving business change, innovation and flexibility. As a result, the management of outsourcing deals has become more complex, the legal and risk factors more complicated and the opportunity to change the status quo more elusive.