Millions of dollars are going down the drain in outsourced services contracts as companies have not been able to implement appropriate situations which account for future pricing factors which impact their outsourcing arrangements.
It has been found out that inflation could have a significant effect on the bottom line of the company during an outsourcing contract period of five to seven years due to increase in hardware, labor costs, living costs and other factors over time.
These issues are being overlooked by the company as they are approaching the contract-negotiation process without realizing the issues that they would be facing and are unaware of the long term perspective.
