Report

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

Summary

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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Forrester helps business and technology leaders use costumer obsession to accelerate growth. That means empowering you to put the costumer at the center of everything you do: your leadership strategy, and operations. Becoming a costumer-obsessed organization requires change — it requires being bold. We give business and technology leaders the confidence to put bold into action, shaping and guiding how to navigate today's unprecedented change in order to succeed.