Executive Summary (This is a document excerpt)

For many IT sourcing customers, the arguments and potential legal battles concerning what is in scope and what is not — both for project work and managed services engagements — are constant thorns. The Australian Department of Defence, in the design of its new IT sourcing engagement model is seeking to avoid such issues through a flexible agreement — skills are always readily available, but they are only paid for when used, without the constant requirement to negotiate (or renegotiate) contracts. It is still early days in deal negotiation, but the groundwork is being laid for a new type of sourcing engagement model centered on customer flexibility.

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