The National Outsourcing Association is drawing up
guidelines to help reconcile the conflicting demands of businesses
and their suppliers.
Users generally want the price of an outsourced service to fall
during an outsourcing contract, but suppliers are under pressure to
make more sales and increase their prices, according to Martyn
Hart, chairman of the National Outsourcing Association.
Users want to avoid surprises and get regular updates of the
technology and an innovative service, whereas suppliers want more
profits and sales, he said.
The National Outsourcing Association, which represents both users
and suppliers, is researching a new form of contract that could
satisfy both parties.
This would require the supplier to reveal to the user their profit
margin on an agreed quality of service. To help improve service
quality and incentivise the supplier, the profit margin would be
split, with half going directly to the supplier and the remainder
invested to create new services and innovative ways of
working.
This innovative approach to outsourcing contracts will form part of
a revised code of practice by the National Outsourcing Association,
which will be produced later this year.
Hart cited outsourcing deals between National Savings and
Investment and Siemens Business Services, and between Xansa and BT,
as examples of successful outsourcing relationships.
He advised IT directors to meet their counterparts at the suppliers
when negotiating an outsourcing contract and to have service level
agreements that are written in business terms rather than
technology jargon.