To Recompete or Not to Recompete? How to Ensure IT Outsourcing Value in the Public Sector
In the public sector, many organizations and agencies that are several years into their IT outsourcing relationships are questioning whether the contracts they initially negotiated still serve them today. In the absence of any formal governance or relationship management structure, or when the governance model is flawed or weak, many decide to recompete their contracts with their external service provider. But this can be very time-consuming and costly, ultimately, creating a negative return on investment. A practical alternative is for the organization to conduct an objective review of the existing relationship in tandem with the service provider, ideally under the guidance of an objective, third-party sourcing advisor, and renegotiate the agreement with the goal of optimizing the relationship to meet the needs of both parties. This paper will address the key elements to review and renegotiate, ultimately saving you time, money, and ultimately maximize the return on your outsourcing relationship.
