The competition in the outsourcing arena is rising and outsourcing firms would have to redesign their contracts in order to get hold of each opportunity. Firms must be able to demonstrate how they could make costs savings and improvements on the service rather than just be a standard service level agreement.
Firms are either opting for in house outsourcing contracts or signing up contracts for a shorter duration. Earlier contracts used to last for a longer period of time but now contracts last for between one and two year.
As per Cliff Mills, research manager, PMP Group:
Outsourcing firms will now have to tailor their contracts to each opportunity and be willing to compete. Firms must also be able to show that their outsourcing deal is able to make improvements and cost savings on the service, rather than just a standard service level agreement.
