For Sourcing & Vendor Management Professionals

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	April 16, 2009 Emerging Outsourcing Models Require New Sourcing Tactics Adjust Your Approach To The Reality Of New Alternatives by Bill Martorelli with Andrew Parker, Elizabeth Rose	Average: 10  (4 ratings)

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Executive Summary

Emerging outsourcing models — including managed hosting, virtual managed hosting, and application hosting and SaaS — are proliferating. They generate interest among business buyers because of their flexibility and cost effectiveness. However, they often present challenges to sourcing and vendor management professionals. Why? Contract structures and negotiation strategies optimized for the on-premise outsourcing world need adjustment to accommodate emerging models, many of which entail remote delivery and complex service delivery supply chains. Sourcing and vendor management professionals should avoid force-fitting incompatible tactics and instead adapt their contracting and negotiating strategies to the new challenges and opportunities.

TABLE OF CONTENTS

• New Outsourcing Models Pose Sourcing And Vendor Management Challenges
• Principles For Negotiating With "New Wave" Suppliers
• Tactics For Effective Demand Management

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