Lower My IT Service Rates (Now Please?)

Best Practices To Negotiate Lower Outsourcing Rates While Balancing Risks

November 5th, 2008
With contributors:
Andrew Parker, Antonin Shanahan


There's certainly no lack of turmoil across the wider global economy, and this is shaping how firms assemble outsourcing deals. But even in cases where prices are locked into longer-term deals, clients are looking for ways to drive down IT services spend with outsourcing providers. Forrester data shows that 73% of global enterprises will seek lower rates from providers. Many clients are embarking on a risky path by attempting to "flog the vendor" over pricing instead of working with providers for mutual success. Forrester surveyed representatives from some leading IT service provider and sourcing deal advisory firms to get their perspective on how clients should best approach rate renegotiations for a win-win outcome. This document highlights some best practices to help clients achieve lower service rates while balancing business and operational risk.

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