Revisiting the value case . . .

Even if the outsourcing plan looks to be on track, irrespective of the effects of discovery, negotiation and commercial give and take, there is still a further danger to watch out for. This is the risk that the project will assume a life of its own.

A typical situation – one which we have seen arise in a number of projects – is where changes in market pressures mean that the effects of the pure cost-cutting exercises envisaged in the original objectives start to run counter to the client company’s interests. For example, with the economic environment improving and competitors starting to invest in their offering, the CEO’s focus is likely to shift from cost management to revenue management and protecting market ...

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