Contract renegotiation

Would you know if your outsourcing deal is out of touch with the requirements of your business?

As the outsourcing market matures, technological developments, heightened competition and the availability of benchmarking data has pushed renegotiation rapidly up the sourcing agenda.

The problem for users of outsourcing is that like the negotiation of the original deal, renegotiation can be complex. Outsourcing providers have skilled negotiators, a keen sense of market trends and decades of experience in renegotiating outsourcing deals.

At Alsbridge, we too have many years experience in helping clients renegotiate successfully and quickly. To ensure our clients secure a fair, competitive and sustainable deal, we provide practical and challenging support during competitive dialogue and renegotiation.

To help accelerate the process, we deploy a range or proprietary tools, including our Contract Evaluation Tool and BPO Benchmark Tool to help clients focus on their strategy and objectives whilst benchmarking against other deals and systematically analysing contract issues.

When to renegotiate…

  1. Extending the term - An inevitable fact of outsourcing life. If an aging contract is not extended through renegotiation, clients are faced with finding a new supplier or bringing services back in-house
  2. Tackling underperformance – Addressing major performance issues, such as persistent failure to meeting service levels, poor benefit realisation or a growing lack of competitiveness against the market
  3. Resolving contract flaws – Many agreements are hampered by poorly drafted or incomplete contracts. This can result in confusion, ‘unintended behaviours’ or tension between the parties
  4. Addressing business change - Addressing a major change in your organisation such as merger, acquisition or divestment
  5. Addressing market change – The outsourcing market is constantly developing, presenting new sourcing opportunities through improved solutions, new supplier capabilities and emerging offshore locations

 Download our Guide to Renegotiation Success here:

Guide to Renegotiation Success