Save or Share this Report

For Sourcing & Vendor Management Professionals

Maximize Value With IT Services Contractual Terms

May 3, 2012

Primary author headshot


  • By Wolfgang Benkel
  • with Christine Ferrusi Ross,
  • Sean-Paul Mauro

Why Read This Report

A contract is the foundation of any outsourcing relationship. It describes all aspects of the engagement, including the scope of work to be performed, the obligations of all participating parties, and the service delivery elements. A rule of thumb is that anything that is not defined in the contract doesn't exist in the outsourcing relationship. Forrester hears a lot of clients complain about too little flexibility and no innovation. Many of their concerns are caused not by their provider's incapability of providing innovation and flexibility but rather by the way certain elements are defined in the outsourcing contract. Sourcing and vendor management (SVM) professionals need to answer the following questions: What are the necessary contract elements that will increase the flexibility of my outsourcing contract? How can I introduce more agility in our outsourcing relationship? What are the best practices I can include in our outsourcing contract to better support innovation and increase our ability to master our multisourcing environment? This contractual terms report gives SVM professionals an overview of the best practices in today's existing outsourcing contracts to maximize the value in IT services outsourcing relationships.

Get Access

Already a Client?

Log in to read this document.

Become a Forrester Client

Customers are the new market-makers, reshaping industries and changing how businesses compete and win. Success depends on how well and how fast you respond. Forrester Research gives you insights and frameworks aligned to your role to shorten the time between a great idea and a great outcome, helping your teams win in the age of the customer. Contact us to learn more.

Purchase Report

This report is available for individual purchase ($499 USD).


Table of Contents

  • Static Contracts Cause Outsourcing Frustration
  • The Contract Must Cover All Aspects Of Outsourcing Relationships
  • The Outsourcing Contract Is The Relationship's Script

  • A Best Practice Contract Needs Careful Preparation
  • Supplemental Material
  • Related Research Documents