A TPI RESEARCH REPORT
January 2007
RESTRUCTURING OUTSOURCING AGREEMENTS:
AN INDICATION OF FAILURE, OR A TOOL TO INCREASE VALUE?
Executive Summary
The role of outsourcing as a primary vehicle to help corporations achieve a range
of strategic objectives -- from realigning corporate cost structures to acquiring
new sources of human capital and to facilitate participation in the rising tide of
globalization -- is well documented. In recent years, this movement has led to a
surge in outsourcing agreements, and -- not surprisingly -- to an accompanying
rise in the tally of outsourcing agreements subsequently restructured or
renegotiated.
While much is known about the popularity and success of outsourcing,
substantially less has been brought to light about the inner workings of the
renegotiation and restructuring process and the results that typify outsourcing.
With the booming global economy unlikely to encourage a downshift in
outsourcing renegotiation and restructuring anytime soon, TPI has targeted this
area for further study, surveying dozens of companies in North America and
Europe that revised their outsourcing agreements over the past decade to
varied results.
This research report from TPI uncovered a number of interesting revelations
about the nature of outsourcing and the reasons why companies often pursue
renegotiation or restructuring as little as 18 months after signing their original
agreements.
Among the survey's most striking insights, TPI found that overall satisfaction with
outsourcing arrangements often lags expectations, with companies reporting
that they receive -- on average -- only 72 percent of the value they had
anticipated. This observation brings to the fore the seminal question of whether
or not the participants -- outsourcing clients and their service providers -- are
effectively aligning expectations in the course of designing their relationships.
And, in the event of misalignment, how are the techniques of restructuring and
renegotiation used effectively to remedy the variance?
Further, we found that dissatisfaction with outsourcing arrangements generally
arose when clients expected more from their service providers than may have
been realistic. (In hindsight, 52 percent of responding companies evaluated
their expectations as unrealistic.) Industry experience reveals the complicated
nature of designing outsourcing relationships that transcend mere pricing
agreements to deliver increasing value to both participants over time. Might the
rapid acceleration of outsourcing that occurred over the past several years have
included a significant number of poorly constructed arrangements that are now
revealing challenges in implementation?
Copyright © 2007, Technology Partners International, Inc. All Rights Reserved.
1
TPI's survey respondents also pointed to insufficient
corporate governance of their outsourcing agreements
While companies' reasons for restructuring
as another obstacle to success, with about 46
outsourcing contracts varied widely, few
percent failing to fully implement proper governance
entered the renegotiation process because
structures and about 35 percent neglecting to
they were dissatisfied with the services they
convene regular meetings of their governance boards
were receiving.
to review outsourcing issues. These self-admissions of
deficient management attention to such an important
and complicated corporate utility -- outsourcing
Some key points:
contract governance -- is among the most revealing
n Restructuring outsourcing contracts across
corollaries to the increasing tendency towards contract
industries is increasing significantly
restructuring and renegotiations. The symptoms were
n "Handshake" agreements -- or agreements
generally left untreated by a large proportion of the
whose terms aren't carefully circumscribed in
companies sampled.
advance -- have not lived up to expectations in
In addition, one in three companies participating
many cases
in TPI's survey reported that their leverage at the
n Restructuring typically occurs about three to six
bargaining table had lessened when renegotiating
years into a relationship
outsourcing contracts as compared with perceived
u Dynamic business conditions often force
leverage before signing their original outsourcing
renegotiation of larger contracts in as little as
agreements.
18 to 24 months after initial award
When undertaken skillfully -- or with the help of an
n Nearly 50 percent of respondents reported
experienced advisor -- most outsourcing negotiation
receiving at least 80 percent of anticipated
pitfalls may be avoided. In fact, this report shows that
value before renegotiating contracts
renegotiated outsourcing agreements often lead to
improved contract terms, extended contract durations,
EXHIBIT 1
higher satisfaction levels and stronger relationships
Survey Background and Objectives
between the client and the service provider.
TPI surveyed 40 companies across multiple industries
THE WISDOM OF OUTSOURCING...
that have recently restructured or renegotiated
AND RESTRUCTURING
outsourcing contracts in order to understand reasons
In the summer of 2006, TPI surveyed 40 companies
why the process was undertaken and to capture key
across diverse industries, gathering feedback on
lessons from their experience. It should be noted that
the enterprises' experiences in restructuring and
the companies surveyed did not necessarily utilize the
renegotiating outsourcing contracts. The project
expertise of TPI or another sourcing advisor for their
aimed to determine the principal reasons for
original contracts or the subsequent renegotiations.
contract renegotiation and whether the results
were satisfactory. TPI's findings showed that while
Industrywide Contracts With TCV > US$50M:
Y/Y Restructuring Growth
companies' reasons for restructuring outsourcing
contracts varied widely, few entered the renegotiation
40
150
process because they were dissatisfied with the services
they were receiving , and even fewer chose to exit
125
outsourcing contracts entirely. In fact, a large number
30
of respondents noted that, had they better managed
100
their original contracts, they might not have had to
revisit them. The majority believed that renegotiation,
20
75
once pursued, generally pays off.
50
10
15.4
16.6
17.1
22.2
20.2
25
0
0
2002
2003
2004
2005
2006
Copyright © 2007, Technology Partners International, Inc. All Rights Reserved.
2
Types of outsourcing contracts surveyed:
they received. The reasons most often cited for
restructuring by companies participating in the survey
n IT-full (5)
included:
n IT infrastructure (15)
n A change in business volume
n IT-ADM (1)
n A change in service scope
n Human Resources (HR) (8)
n Issues with service pricing
n Multi-process (4)
n The contract was revised after having expired
n Other (5)
Cost savings and long-term efficiency benefits of
EXHIBIT 2
external sourcing have prompted a broad cross section
Primary Reasons for Entering into
of companies to pursue outsourcing arrangements as
Renegotiations
a way of gaining a competitive edge in an increasingly
As depicted in the below graph, the two most
challenging global marketplace. As a result, outsourcing
frequently cited reasons for contract renegotiations
relationships are becoming smaller, more numerous
were "contract came to end of term" and "change in
and more complex, with clients increasingly using
business volume requirements."
multiple service providers.
Top Five Reasons Reported for Contract
Respondents to TPI's survey answered 30 questions
Renegotiations
about the breadth and depth of their outsourcing
agreements, from how they were handled at the
outset to how they were ultimately renegotiated. These
inquiries seek to provide a clearer understanding of
A change in service
scope requirements
why outsourcing contracts may be restructured. Issues
A change in our
addressed included:
business requirements
Issues with service pricing
n The major reasons behind a company's decision
to renegotiate a sourcing contract
The contract had come
to the end of its term
n The alternatives considered (for examples,
Other
changing service providers and/or going back
"in-house")
n Changes in the contract as a result of
restructuring
Other reasons for renegotiation mentioned on a
n Lessons learned from the sourcing and
secondary basis included "issues with service quality,"
restructuring process
"issues with service relationship" and "desire to access
n Whether goals were being met following
new/different solutions."
restructuring
Based on TPI's experience in advising clients on
This research report summarizes the experiences
outsourcing agreements, trouble spots can often
of companies that have restructured outsourcing
emerge as a result of:
agreements, drawing lessons from real-life examples
n A large number of sole-source agreements,
on how to best approach the renegotiation process for
which can weaken a company's bargaining
maximum value.
power
REASONS FOR RESTRUCTURING
n The deferral of critical details in favor of an
Companies are primarily motivated to renegotiate
"executive handshake"
outsourcing contracts because of a fundamental
n Unrealistic client expectations of a customer-
change in their business, not because of service
friendly agreement
delivery problems with their service providers. Only
a small subsection of respondents to TPI's survey
reported dissatisfaction with the quality of services
Copyright © 2007, Technology Partners International, Inc. All Rights Reserved.
3
A Common Pitfall
"We spend months on designing a contract, and
The Promise: "A partnership with a premier service
ultimately it never covers every scenario that may
provider of world-class solutions"
come up. We invested a lot of time with the service
provider arguing over the interpretation of many
The Reality: "Same staff delivering the same services"
clauses, as situations inevitably arise that are not
SOURCES OF DISAPPOINTMENT
exactly as expected, but similar; and each party
naturally interprets the gray area to its advantage."
Problems encountered with outsourcing contracts prior
to renegotiation often stem from misunderstandings
AN EVOLUTIONARY PROCESS
between the company and the service provider about
Counter to what some might believe, the
the scope of services to be provided -- again, not from
reconsideration of an outsourcing agreement is not
the quality of services actually being rendered.
so much an indication of a failure in the relationship
Companies cited their own lack of expertise in
as it is an opportunity to secure a better outcome for
drafting the initial outsourcing agreements as a
all involved. In fact, contract renegotiations are often
major impediment to a higher degree of success.
obligatory simply to keep pace with developing
This suggests companies might benefit from seeking
the advice of an outside firm experienced in guiding
clients through the complexities of the outsourcing
Companies blame themselves at least as
process before entering into agreements. For example,
much as the service providers for their own
essential assumptions must be aligned regarding
dissatisfaction with outsourcing relationships.
whether or not the service provider will assume then-
existing operations or -- instead -- accelerate the
transformation of services through deployment of
business trends -- not because of any slip-ups on the
provider-defined solutions. This one point introduces
part of the service provider. As a measure of this,
far-reaching ramifications to the management of
less than one-fifth of the companies surveyed by TPI
change across the enterprise and the setting of internal
reported severing all or part of their relationships
expectations.
with their service providers. Furthermore, the data
collected reveal that renegotiated contracts were often
extended in length and scope when compared with
Companies cited their own lack of
previous arrangements.
expertise in drafting the initial outsourcing
Note these five insights observed by TPI in advising its
agreements as a major impediment
clients, as reinforced by the survey data:
to a higher degree of success.
n Most outsourcing agreements will undergo a
significant amount of restructuring before they
Consider these representative comments from the
expire
companies surveyed by TPI on the divide that can
emerge between what an outsourcing agreement
n A majority will be restructured within the first
seems to promise and the subsequent reality:
three to four years
n Roughly three-quarters of these agreements
There was the broad expectation of BIFF ("big
will be restructured with the incumbent service
improvements for free"). In reality, the service provider
provider
will always give you NIFF ("nothing is for free") and will
only stretch toward excellence when challenged to do
n Most of the remainder will be re-sourced rather
so."
than insourced
"I believe we largely underestimated the task of
n Only a fraction will be in such trouble that
litigation is pursued
managing the contract and all that entails. It took us
a few years to get the proper quantity of resources
The need to restructure an outsourcing agreement
in place to tackle the job worldwide. Our largest
should not be considered a failure in the relationship.
disappointment before we renegotiated was our
Interestingly, many companies blame themselves at
finding that our pricing was significantly higher than
least as much as the service providers for their own
market."
dissatisfaction with outsourcing relationships . This
calls attention to the need for companies to proceed
carefully in managing their outsourcing agreements,
both in terms of expectations and execution.
Copyright © 2007, Technology Partners International, Inc. All Rights Reserved.
4
EXHIBIT 3
Analyses of Top Trouble Spots
This table clearly shows how companies, by their own admission, often contribute to the conditions that eventually
force them to revise an outsourcing contract. Note, in particular, the emphasis on setting up contracts versus actively
managing them.
Statement
Agree Strongly Agree
Disagree Disagree Strongly
The problems were due to our organization placing more
28%
33%
22%
17%
emphasis on setting up the contract than on managing it.
The problems were due to the service provider(s) failing
17%
36%
39%
8%
to deliver on promises.
The problems were due to unrealistic expectations on
6%
31%
49%
14%
the part of the service provider(s).
The problems were due to unrealistic expectations on
9%
43%
34%
14%
the part of our organization.
The problems were due to inexperience in managing
20%
29%
37%
14%
outsourcing contracts.
TPI's experience in negotiating outsourcing agreements reinforces the observations reported by the sampled
companies. That is, the art of successful outsourcing is less dependent upon strong contractual language than it is on
the effective alignment of expectations among the parties. This requires skill and experience in navigating the nuances
and semantics of outsourced services -- and through installing a competency in service management and governance.
Management of the Contract Prior to Restructuring
With the critical importance of service management and governance in mind, it would behoove companies to pay
more attention to the management of their outsourcing relationships, though it appears that many do attempt to
track how well terms of their contracts are met in addition to convening governance meetings to evaluate progress.
Even so, the table below suggests that companies could do more to successfully manage their outsourcing
agreements by discussing key issues more frequently with sourcing advisors.
EXHIBIT 4
Client Areas of Focus In Managing Outsourcing Relationships
Below companies indicated that their chief focal points in responding to the question, "Please select all of the
following that applied to your organization's management of its outsourcing contract before it was last renegotiated."
Annual benchmarking of performance
40.5%
Regular review of the business case
54.1%
Regular referral to the contract
78.4%
Regular meetings of a governance board
64.9%
Regular consultation with sourcing advisors
32.4%
Full implementation of the governance structure and sourcing
54.1%
management framework outlined in the original contract
While it is commonly accepted wisdom that the best contract is the one that is rarely referred to by necessity, the
governance component of managing outsourcing agreements appears to be the most often-cited issue related to
restructuring.
Perhaps this would not occur as frequently if companies relied more effectively on sources of practical expertise in
managing the various elements of effective governance.
Copyright © 2007, Technology Partners International, Inc. All Rights Reserved.
5
Perception of Value
Early Warning Signs
Companies tend to be satisfied with the value they
With the benefit of hindsight, 61 percent of
receive from outsourcing contracts both before and
respondents said there were warning signs of issues
after restructuring, according to TPI's survey. This
that would later require attention. When asked to
underscores the positive results that may be gained
elaborate, companies offered a number of analyses
from outsourcing, regardless of renegotiations (though
that, as often as not, boiled down to their own
these agreements do require frequent review and
behavior when drafting or troubleshooting outsourcing
maintenance).
agreements. Among their responses:
As touched on earlier, nearly half of survey respondents
n "The original contract was not managed well.
reported receiving at least 80 percent of the value they
Metrics/SLAs had no flexibility and should have
had initially expected prior to restructuring, with only
been changed."
a handful of companies giving extremely low grades to
n "Certain key contract constructs were unclear or
their service providers.
open to interpretation."
Demonstrating this, survey respondents indicated
n "Lack of willingness to negotiate on project
they were much more likely to renegotiate a contract
pricing and inflexibility in delivery of services"
due to internal changes to their own businesses (for
n "Lack of focus on generating business benefits
example, a fluctuation in sales volume) than because of
for customer"
perceived shortcomings in the services provided.
n "Our own growth and changing needs"
EXHIBIT 5
n "From the first day, there were discussions
that included the phrase `not in scope'" -- a
Value Expected vs. Value Perceived
reflection of what the contract would not be
Nearly 50 percent of respondents reported receiving
offering."
at least 80 percent of anticipated value before
renegotiating contracts.
Alternatives Considered
There are three logical alternatives available once
25 percent reporting receiving less than 50 percent of
a company decides that contract restructuring is
anticipated value.
necessary:
12
n Re-tendering (switching to another service
provider)
10
n Bringing the work back "in-house"
n
8
Remaining with the incumbent service provider
Response
Though 42 percent of TPI's survey respondents said
6
that they considered soliciting bids from other service
providers, only 18 percent actually did so. The option
4
was not considered by forty percent. Similarly, 41
percent said they considered bringing some or all of
2
their outsourced work back "in-house," but only 13
percent actually followed through. The in-house option
0 0-9% 10-19% 20-29%30-39%40-49%50-59%60-69%70-79%80-89%90-99%
was dismissed outright by 46 percent of respondents.
Value
While alternatives to the incumbent often appear
attractive, in its own experience, TPI has found that
While substandard "value received" is often anecdotally
the friction typically involved in making the switch can
reported as one of the main reasons for companies'
be quite considerable. Further, most clients conclude
dissatisfaction with their outsourcing agreements, this
that the industry's service providers are generally adept
table illustrates that this is generally not the case.
at delivering to contractual commitments and that
courses of remedy must necessarily involve changes to
the service management and governance processes as
a first course. Aborting an outsourcing arrangement is
rarely considered a viable first option.
Copyright © 2007, Technology Partners International, Inc. All Rights Reserved.
6
The Restructuring Process
One company that described the task as "fairly easy"
Although it frequently proves worthwhile, contract
noted, "The process had to be rigorous and transparent
restructuring can be a complicated endeavor. TPI's
in achieving value-for-money outcomes."
survey explored the time necessary to complete
Based on these findings, as well as on TPI's own
renegotiations, as well as companies' perceived
handling of contract renegotiations, the following
bargaining power and leverage during the
template serves as a good guide for achieving optimal
renegotiation and/or contract renewal process. It also
renegotiation results. Since every contract is different,
gauged the level of difficulty companies described in
this is meant to be used as a frame of reference only.
drafting new outsourcing pacts.
When asked about the duration of renegotiation, 85
Phase I
percent of those surveyed indicated the restructuring
Conduct assessment and develop
3 - 6 weeks
process required less than a year to complete. Fifty-five
a strategy
percent finished renegotiations in less than six months
and 13 percent finished in less than three months.
Plan for additional time if client
leverage or issues are unclear
EXHIBIT 6
Phase II
Time Required to Renegotiate the Contract
Conduct good-faith negotiations with 4 - 8 weeks
service provider
Allow additional time for service
provider response if scope is large
Plan for additional time if outlook is
promising but closure is not achieved
Less than 3 months
Phase III
Less than 6 months
Develop contract amendments
4 - 6 weeks
Less than 1 year
Less than 18 months
Timeframe depends on extent of
Less than 2 years
changes
More than 2 years = 0%
Note: This is a boilerplate for driving discussions; actual
activities and timing will be determined by scope, term,
55 percent of respondents reported that the process required
less than six months to complete
and severity of issues being addressed.
Coming out of restructuring, 40 percent of
When asked to evaluate their leverage at the
respondents reported an increase in "expectations with
negotiating table, 29 percent of respondents reported
regard to subsequent outsourcing agreements."
that their position during restructuring was weaker
As companies increasingly acquaint themselves with
than at the time of the original contract's signing.
the outsourcing and renegotiation process, finding new
Offering a tip on how to boost leverage, one
ways to achieve ever greater benefits, TPI expects the
respondent who reported having gained the upper
frequency of agreement restructurings to grow. Service
hand advised, "Parceling out the IT infrastructure into
providers should note that the bar is continually being
separate chunks and tendering for other components
raised on the quality of services they provide.
has provided significant leverage through the
Major Changes Made to Renegotiated Contracts
renegotiation process."
Renegotiation often entails overhauling major
Feedback on the difficulty of the restructuring
components of the original agreement -- including the
process was largely polarized. Forty percent of survey
price tag. The four most frequently targeted areas for
respondents said renegotiating was "very difficult,"
change are:
while 37 percent indicated that it was "fairly easy."
n Change in term
n Change in scope
n Change in contracted cost
n Change in satisfaction level
Copyright © 2007, Technology Partners International, Inc. All Rights Reserved.
7
Contrary to popular belief, restructuring often leads
to an extension in the duration of the outsourcing
contract. In TPI's survey, 46 percent of respondents
reported an increase in term, with contracts most
frequently lasting three years and in excess of four.
Scope was somewhat
expanded
Forty-two percent of those surveyed reported no
Scope was expanded
change in term, and only five percent reported a
significantly
decrease.
Scope was somewhat
reduced
Scope was reduced
EXHIBIT 7
significantly
Scope did not change
Change in Contract Term After Restructuring
Contrary to popular belief, restructuring frequently
results in an extension of the contract relationship.
n 46 percent reported an extension in contract
The data from TPI's survey squarely supports the notion
term
that restructuring need not reduce the breadth of
services provided by a contract. Indeed, renegotiation
n 42 percent reported no change
may even improve the contract's value by offering
n Only five percent reported a decrease in term
additional services while lowering its overall cost.
Renegotiation may even improve the
contract's value by offering additional
No change
services while lowering its overal cost.
Shortened
Still, a glance at changes in the price tags of
Extended 1-2 years
restructured contracts surveyed by TPI shows mixed
results on this front. Thirty-nine percent reported an
Extended 3+ years
increase in the cost of their renegotiated contract,
while 44 percent reported a decrease.
EXHIBIT 9
Most renegotiations also yielded an expansion in
Changes in Cost of Renegotiated Contracts
contract scope. Fifty-nine percent reported that their
Changes in contracted value post-renegotiation
renegotiated contracts called for a broader range of
showed mixed results.
services than their original agreements, with 13 percent
n 39 percent reported an increase in contract
citing a "significant increase" in the services provided.
value as a result of renegotiation
About 26 percent reported a decrease in scope, with
n 44 percent reported a decrease in contract
10 percent citing a "significant decrease."
value
EXHIBIT 8
Change in Scope
Most restructurings yielded an increase in contract
scope.
The contract increased
in value
n 59 percent reported an increase in scope
The contract decreased
resulting from renegotiation (with 13 percent
in value
citing a "significant increase")
The contract value
remained the same
n 26 percent reported a decrease in scope (with
10 percent citing a "significant decrease")
Copyright © 2007, Technology Partners International, Inc. All Rights Reserved.
8
The greatest advantage for companies that engaged in
Similarly, 69 percent of respondents either agreed or
renegotiation appeared to be the higher level of overall
strongly agreed with the statement, "The problems
satisfaction they reported following restructuring.
were due to inexperience of managing outsourcing
Before renegotiation, companies rated their satisfaction
contracts."
level at 6.2 on a scale of 1 to 10, with 10 being the
Good governance of an outsourcing relationship can
highest level of satisfaction. After renegotiation, their
take on several forms, but all of them require the active
average level of satisfaction rose to 7.8.
participation of the company that is retaining the
Effectiveness of Changes
services. For best results, it would behoove companies
Of those surveyed, 56 percent indicated that
engaged in outsourcing agreements to:
renegotiating their outsourcing contracts proved
n Ensure that operational metrics accurately
"effective" or "very effective," while 21 percent said it
reflect the changing requirements of the
was "too early to tell" and five percent reported that
business
their changes were "not effective." This again offers
n Cooperate with the service provider in
evidence that engaging in renegotiation can yield
considering deployment of new technologies to
impressive returns.
maximize value and minimize risk
Lessons Learned
n Monitor productivity and quality of applications
Looking back on their outsourcing experiences,
development
respondents to TPI's survey said that they would
n Analyze critical service levels and key
have done a number of things differently prior to
measurements to confirm that credits for
renegotiation for better results, including:
services are properly accounted for
n "More detailed due diligence" and "better
n Devote appropriate executive attention to
understanding of business requirements to
escalation protocol, with timely resolution plans
support pricing"
Though 65 percent of our respondents reported
n "Enact a governance process and stick to it"
"holding regular meetings of a governance board,"
n "Maintain resources and commitment in
merely having a board that meets occasionally is not
ongoing management of the contract"
enough. Retaining an outsourcing advisor can often
The Governance Cornerstone
reap dividends, as does keeping open the lines of
communication between the outsourcing client and
Over the course of several hundred client agreements,
the service provider. Again, the frequency with which
TPI has observed one key point that was repeatedly
companies cite their own organization as too lax in
backed by its survey findings: The manner in which an
supervising their own agreements underscores the
outsourcing relationship is managed can be at least
need for tighter governance.
as important as the attention given to forging the
outsourcing relationship.
Conclusions
Too often, a company will take a "turnkey" approach
The survey data supports observations from TPI's own
to an outsourcing agreement, expecting the service
experiences in advising clients engaged in outsourcing
provider to address all important issues independently
agreements. Among them:
and to anticipate the need for operational metrics in
n Restructuring is, in many cases, a natural
gauging value. In truth, meaningful metrics cannot be
evolution of a relationship -- not an indication of
separated from the client's business strategy. Indeed,
failure.
the only way to benchmark value is through careful,
persistent attention to detail by all parties involved.
n Time spent working on the design of the
requirements-definition phase of a contract
The results of TPI's survey bear this out. According to
often pays off later.
its data, 89 percent of respondents either agreed or
n As in "lean manufacturing," $1 spent on design
strongly agreed with the statement, "The problems
may yield over $3 saved in implementation.
(with contracts) were due to our organization placing
more emphasis on setting up the contract than on
n Sustained, disciplined management of the
managing it."
outsourcing relationship is critical to avoiding
so-called "value leakage."
Copyright © 2007, Technology Partners International, Inc. All Rights Reserved.
A word to the wise: Once a company feels that
Original contract-signing dates ranged from 1995
restructuring may be necessary, it is imperative that
to 2006, with 56 percent signed between 2000 and
the service provider is informed immediately that
2003, inclusive. Original contract terms ranged from
"business as usual" is no longer an option -- especially
one to 10 years, with 64 percent ranging from three to
in the case of unsatisfactory services. Withholding
seven years and 25 percent signed for 10 years.
disputed charges is the best way to get the service
provider's attention. To this end, always pay for the
FOR MORE INFORMATION
services you receive, but do not pay for:
For more information about this survey or about
TPI, please contact Stuart Harris, Partner & Data
n Services that are not delivered
Management Center of Excellence Leader, at
n Services that are totally unsatisfactory
stuart.harris@tpi.net or +1 972 380 2724.
n Services that were not properly authorized
As we have seen from the TPI survey, negotiating
ABOUT TPI
leverage is at risk of being reduced when restructuring
TPI is the sourcing advisory industry founder, and
a major outsourcing contract. Effective leverage
the largest advisory firm in the world focused on a
in renegotiation comes only when a company has
broad range of business support functions and related
developed viable alternatives.
research methodologies. Applying deep functional
domain expertise of accomplished industry experts
n Companies must be ready, willing and able to
execute
who possess extensive practical experience, TPI
collaboratively works with organizations to help them
n Companies also must be financially, technically,
optimize their business operations through the best
tactically and strategically feasible and desirable
combination of insourcing, offshoring, shared services
to potential service providers
and outsourcing. For additional information, visit
ABOUT THE SURVEY
www.tpi.net.
Respondents included 40 companies in Europe and
North America, across most major industries. Contracts
covered a variety of service types, including:
n IT-full (5)
n IT infrastructure (15)
n IT-ADM (1)
n Human Resources (HR) (8)
n Multi-process (4)
n Other (5)
www.tpi.net
TPI CORPORATE HEADQUARTERS
+1 281 465 5700 Office
10055 Grogan's Mill Road, Suite 200
+1 281 465 5770 Fax
The Woodlands, Texas 77380
Copyright © 2007, Technology Partners International, Inc. All Rights Reserved.