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Started by : Mohit Aggarwal, Sales/BD Manager, Oracle   02 15 2010 07:37:12 +0000
Industry : IT ServicesFunctional Area : Outsourcing(Operations)
Activity:  31 views;  last activity : 07 06 2010 20:18:09 +0000

As we all know, renewing an outsourcing contract provides businesses with an opportunity to revive existing deals and transforming the quality of their IT services. The key to businesses getting what the client wants when renewing their contract lies in good preparation for negotiations with their supplier.

So, it is vital for organisations to fully research what alternative suppliers have to offer before starting negotiations to renew an existing deal. Effective contract negotiations leverage comes from developing viable alternatives that are financially, technically and tactically feasible.

So, I would like to know from you guys, how, according to you, can IT outsourcing be done in a most cost effective way?

 
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1 Understand youe NEEDS
2 Clearing up woolly contracts

Understand youe NEEDS

idea posted by Makrand Bhave Marketing & MICE, WIZCRAFT International

That is most important according to me. If you know what you need, where to look for it would be most easy. Most people google, ask directory services with maybe half knowledge of what they really need and hence always find themselves flooded with a huge list of suppliers.

Zero down to what you really need and more often than not, you will find the correct vendor at your doorstep. Also in trying to understand whether the vendor is indeed correct to fulfill your needs its equally important for the vendor to know that YOU know what you are asking for. Negotiations are easy and fruitful if YOU yourself are completely aware of the needs and approximate price points. Its always better to be fully informed of the market scenario vis-a-vis your needs. If you can negotiate, because you are in a position to, you will always be cost effective!!

Thanks for the referral :)

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Clearing up woolly contracts

idea posted by Mohit Aggarwal Sales/BD Manager, Oracle

Problems often arise with outsourcing contracts because they do not define precisely enough what services should be delivered. Because of this there will often be a number of areas where businesses and their supplier disagree on the nature of the outsourcing contract. Typically these misunderstandings occur in areas such as the scope of services the supplier provides and how to manage the deal. Businesses should use their experience of working with the supplier to clarify woolly areas of the contract so both sides know precisely what the contract should deliver.

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by VLADIMIR GUTENMAHER, Unit Manager, ALLIANZ TIRIAC  | 02 15 2010 21:06:30 +0000

I am supporting the idea, as it is obvious that any sale have to be closed based on a thorough evaluation and understanding of the customer needs! The contract should formalize the mutual agreement between the provider and his customer upon the solutions chosed and the problems that they are addressed to!

Anyay, the renewal have to be perceived as an opportunity for the provider in order to fine tune the solution, taking care of any changes that the customer activity might experience, proving professionalism and a hands on, can do attitude!

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