IT outsourcing marriages sometimes require changes from both partners

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As I blogged last week I am currently working on a feature about IT outsourcing contract renegotiations.

With the large amount of feedback I am getting I thought it apt to blog separately about some of the views I am receiving.

Last week I blogged: Are we seeing first wave of recession proof outsourcing contracts in trouble?; and IT services firm do not understand social media and cloud applications

Today I am blogging some of the comments from outsourcing lawyer Peter Brudenall, at Lawrence Graham.

Most of the comments I have received involve the outsourcing customers wanting renegotiation. Peter said something interesting about suppliers wanting things to change. Outsourcing relationships are supposed to be like marriages so I suppose this is not surprising.

This is what he said:

"...service providers who find that they are not making anything like the revenue they were expecting, perhaps because the volume of work has not been there.  This has led to re-negotiations to reflect the reality of the situation so that the service provider has had reduced obligations and liability levels because the contract is, in fact, a lot smaller than either party had anticipated."

Any other reasons a supplier might want change?

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The changes that are happening in the world of outsourcing are apparent. Over-billing, which has been a sore spot for some time with companies that outsource, is now a thing of the past with the ability to track in real time using This allows employers to see what is going on seamlessly, all without raising any privacy issues with outsourced employees.

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About this Entry

This page contains a single entry by Karl Flinders published on September 25, 2012 11:25 AM.

Southwest One shared service under spotlight after "shambolic accounting revealed." was the previous entry in this blog.

Mid-sized businesses are the big outsourcers today, but will they repeat the mistakes of the pioneers? is the next entry in this blog.

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