|
According to the results of EquaTerra’s 4Q06 Outsourcing Pulse Surveys, and contrary to popular views and portrayals, the prevalence of outsourcing contract renegotiations, recompetes and restructurings are not a widespread sign of “deals gone bad” or the demise of the outsourcing industry
Rather, buyers, service providers and outsourcing advisors alike view them, in most cases, as a catalyst and opportunity for improving the deal.
Stan Lepeak, Managing Director of Research at EquaTerra says, “The reality is, most outsourcing deals face periodic, and often ongoing, challenges the buyer and service provider ultimately resolve. Also, the large number of IT outsourcing deals and comprehensive, early-adopter HR Outsourcing deals signed in the late 1990’s and early 2000’s are entering a natural phase of renewals and restructurings. And, in retrospect, some of the early multi-process HRO deals were not structured well for either the buyer or the provider. All these factors contribute to an increased level of renegotiations, recompetes and restructurings, but are not necessarily negative in reason or outcome.”
|
