End of Software, The: Finding Security, Flexibility, and Profit in the On Demand Future

Challenging the Status Quo

Many leading analyst firms have noted that numerous outsourcing deals have had problems because clients feel they are not being serviced properly and feel tied to a rigid, long-term contract. Outsourcing contracts need to be kept flexible and negotiated to allow for adjustments during the life of the contract.

At one time, the issue was what to outsource and which company to use as a service provider. But now the main issue is managing the relationship with the outsourcer. The Boston Consulting Group points to surveys indicating that managers often “reflect in hindsight that they seriously underestimated the complexity of structuring and negotiating a contract. Many respondents [to the BCG survey] feel they relied too ...