Vendor Contracts

One of the things rarely discussed in outsourced or multi-sourced environments, on either side of the table, is change.

Most outsourcing/multi-sourcing contracts are for 5 years.

Yet, the business needs change dramatically over two years, if not more frequently. Consider how much change we’ve had the past two years. Looking ahead, the rates of change are only picking up.

So, the measures, including penalties, are out of alignment for more than half the contract. They do not measure outcomes.

This leaves both sides unhappy: the business with unmet outcomes and the third-party partners, with IT stuck in the middle.

Service Management Leadership can help align these objectives and outcomes.