How Do You Ensure Value for Money in an Outsourcing Relationship?


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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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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