As business needs—and the new technologies required to support them—evolve ever more rapidly, outsourcing contracts signed just a year or two ago are already getting stale. That’s why Mayer Brown business and sourcing technology partner Dan Masur is advising companies to revamp their outsourcing deals right now to not only access new options, but also to cut significant costs.
“There have been dramatic changes in how services are delivered, and those continue to evolve. New, non-traditional players have emerged offering different products and services. Digital strategy is now a strategic priority for every business. CIOs have to think about how they’re going to build things like mobility, big data, analytics, and cloud into their existing sourcing arrangements,” says Masur. “You can’t tell the business, ‘Sure we could do those things but our outsourcing deal doesn’t expire for another three years. We’ll get to it then.’”
Specifically, there are five areas—which Masur has dubbed the “Five ‘R’s”—that companies should examine to uncover where their current sourcing deals may no longer be serving them well:
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