How to renegotiate outsourcing contracts
A seven to 10-year outsourcing deal may work well initially, but four or five years later, it may no longer be appropriate. Peter Scott outlines how to get the edge in renegotiating - and what the initial contract should include to facilitate such renegotiation.
It was the Prussian field marshal Helmuth von Moltke who said, "No operation extends with any certainty beyond the first encounter with the main body of the enemy." And whilst it seems foreign to the spirit of a long-term deal to call an outsourcing supplier the enemy, von Moltke's basic sentiment holds good: no matter how thorough your initial planning, there will still be things you will want to change once you get into the deal.
Minor amendments can be dealt with through change control, and there is always the opportunity to change things when the term runs out.