Key Leverage Points In Applications Outsourcing Negotiations

Sourcing and vendor management (SVM) professionals face a challenge when dealing with their applications outsourcing suppliers. On one hand, they are under pressure from CIOs and other executives to cut costs and hold the line on vendor rates. On the other, they must establish effective long-term partnerships that ensure quality and business alignment. These sometimes contradictory goals can leave sourcing and vendor management professionals at a loss when it comes to true sources of leverage in their negotiation and governance strategy. By understanding applications outsourcing supplier concerns and drivers, customers can identify potential pressure points to wield in negotiations, and even increase the likelihood of positive business outcomes from applications outsourcing relationships.