The Three Rs of Contract Renegotiations: Restructuring, Renewing, and Realigning the Outsourcing Relationship

Table of Contents

• Table of Contents
• IDC Opinion
• In This Study
• Situation Overview
• Table: Significant Canadian Renegotiated Contracts, 2006
• Figure: Renegotiations as a Percentage of TCV
  • Why Are Outsourcing Contracts Being Renegotiated?
  • Table: Main Motivation for Renegotiating Outsourcing Contracts
    • Inability to Meet the Client' s Initial Expectations
    • Figure: Causes of Renegotiation
    • Table: How Expectations of Outsourcing Are Formed
    • Lack of Vendor Commitment
    • The Winner' s Curse
  • The Inability to Meet the Client' s Financial Objectives
    • Unanticipated Costs
    • The Inappropriateness or Fit of the Pricing Model
    • Sustained Cost Savings
  • Changes in the Client' s Business
    • Need for More Flexibility and Adaptability
    • Changes in Technology
    • Changes to the Client' s Management Structure
  • Approaching Expiration
  • Inability to Meet the Financial Objectives of the Vendor
  • Additional Elements of Renegotiation
• Future Outlook
  • Accelerators
  • Inhibitors
• Essential Guidance
  • For Outsourcing Clients
  • For Outsourcing Vendors
• Learn More
  • Related Research
  • Synopsis