Contracts: A Vital Part in Outsourcing
Research analyst Gartner recently revealed that contracts in outsourcing plays a vital role in the outsourcing deal's success or failure.
According to the research analyst, the inability of coming up with a stricter and more rigid outsourcing contract often leads to the failure of any outsourcing deal.
There are 18 key areas found in every standard outsourcing contract. Gartner pointed out that 15 out of the 18 key areas in outsourcing contracts should be redefined or be taken into careful consideration. Some of these areas identified includes security and confidentiality, legal compliance, fees and payment terms, and auditing.
Helen Huntley, a Gartner analyst pointed out that the rules applied in onshoring contracts does not necessarily work for outsourcing ones. For example the IPR of the outsourced country should be considered so that the firm could still protect their identity even when outsourcing or Offshoring.
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Well, even in our high-tech world, we need to feel secure as safety is basic need as also defined in Maslow’s Hierarchy of Needs, especially when you look for outsourcing, make sure to go in safe and secure hand.
Comment by Outsourcing Technical Support on September 15, 2006 8:10 am
Yeah, Customer wants best-of-breed approach and also improved access to service provider creativity, innovation & best practices hence I think a sort of restructuring in outsourcing is also necessary.
Comment by Cheap Web Hosting on October 3, 2006 3:00 am