A company embarking on an outsourcing project will often identify cost reduction and value for money as key drivers for the outsourcing. Service providers will usually tout their value for money in their pre-sales materials. But in practice, companies often discover that, although they may be happy with the price that was originally quoted during the initial tender exercise, keeping aligned with
value for money standards is more difficult.
So what mechanisms can be built into an outsourcing relationship to help keep the price competitive over the life of the contract, once the leverage of the tender process has disappeared? Here’s a list of 10 common mechanisms that can be used to focus on keeping continued value for money at the heart of the outsourcing relationship.
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