11 Keys to Successful Outsourcing - Slide 11

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There are many risks involved in constantly trying to get a lower price from outsourcing providers. Service can suffer, for one, and rest assured providers will look for ways to recoup deep early discounts over the life of an outsourcing contract.

Some companies are realizing the inherent flaws in this transaction-based model and are looking at vested outsourcing approach. In vested outsourcing, providers determine how they can best apply processes, technologies and capabilities that will drive value to their customers. The customers, in turn, agree to allow providers to earn additional profit for achieving this incremental value. Clients also commit to providing a certain level of business for providers.

Also see: 12 Trends that Are Shaping the Outsourcing Market

The last few years have witnessed a great deal of economic instability, company upheaval and strategic refocusing. In the midst of these changes, outsourcing has continued to be a strong and beneficial outlet for fulfilling IT projects. To assist you along this path, we've pulled together a list of key points you should consider when approaching a new outsourcing project or rethinking a current contract

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Related Topics : Database Migration, Infrastructure, Project Management, Request for Proposals, Strategic Planning

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