For Sourcing & Vendor Management Professionals

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	April 10, 2009 Tactics To Manage Currency And Inflation Risk In Your IT Services Deal by Paul Roehrig, Ph.D. with Christine Ferrusi Ross, Andrew Bartels, Duncan Jones, Antonin Shanahan	Average: 8  (1 rating)

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Executive Summary

The new market reality is that costs have to come down in almost every commercial business sector due to current roiling economic pressures. This can seem nearly paralyzing to IT sourcing decision-makers trying to solidify strategies to survive the recession today while building a foundation for growth in the future. IT services decision-makers clearly can't manage macroeconomic forces well beyond the control of any single outsourcing deal, but deals can and should be architected to limit potential damages from extreme fluctuations in exchange and inflation rates. Because a majority of major outsourcing deals now include a global delivery component, IT services decision-makers should architect contracts that offer some protection to their firms in the face of fluctuating currency exchange rates and higher or lower inflation across the globe. Forrester surveyed representatives from several leading IT service provider and outsourcing deal advisory firms to get a practitioner perspective on tactics that clients can use to optimally manage outsourcing issues associated with currency fluctuation and inflation.

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