IT Outsourcing – You never get what you ask for, but what you negotiate!

Nothing comes easy. IT Outsourcing, most certainly not. Even as IT outsourcing continues to grow and expand, standardized service offerings are being introduced, and customers are provided varied pricing options. All these, while the maturing IT outsourcing market tightens service levels, contracts and pricing models.

Complications and complexities in IT outsourcing deals are a result of experienced players in the market negotiating for higher benefits, better technical and functional compliance, service levels and most importantly, competition. Factors such as scope, liability, objectives etc. seem to be uncharted territories that newer contracts are entering into.

Tired of hearing or reading of contractual terms like limitation of liability, step-in rights, indemnities, pre-defined financial damages? How about termination fees, termination rights, service levels, transition fees?

You are not alone. All these terms bring tremendous amount of ambiguity to the table, not to mention heartaches during the negotiation process! So when negotiating with your IT vendor/partner, ensure that both of you understand clearly the meaning, implication, and scope of the project – whether legalese is involved or not.

But at the end of the day, the contract that you negotiate with your IT outsourcing vendor is just a piece of paper. What is more important is that you find an IT partner who has the ability to deliver to your needs, and has the flexibility to accommodate your requirements as they change.

As an IT technology company, we firmly believe in the value of outsourcing. But we also know that businesses need flexibility, lower risk, and more options when outsourcing their IT work. Suyati offers traditional as well as customized, unique models of engagement that ensures every business does extend their IT profitably when they choose us as their IT outsourcing partner.

Author : mkrishna Date : 11 May 2012