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A Decade On: How Should Australian Outsourcing Contracts Look Today

Product Type: Market Research Report
Published by: IDC
Published: August 2005
Product Code: R104-20634
Description

This IDC study presents an overview of the changes taking place within the outsourcing contracts that are getting structured in the marketplace. It presents suggestions and guidelines to service providers on some best practices in contract development based on an analysis of the traditional outsourcing contracts with their pitfalls and the expectations of the demanding customers.

"Customer demands to create such closer and tight working relationships, is posing challenges for the service provider leading to the prospect of diminishing profit margins. Most of the time, vendors and customers have conflicting objectives with some of the organisations not willing to understand the trade off between factors like speed and quality of the service delivery or innovation and growth versus cost savings," says Aprajita Sharma, senior analyst for Outsourcing and BPO Research, IDC Australia.

Table of Contents
Table of Contents
IDC Opinion
In This Study
Situation Overview
The Nature of a Good Governance Framework
Figure: Structured Governance
Measuring Value in a Relationship
What Is New About the Value-Based Outsourcing Model?
Approach
Relationship Mapping
Linking IT Investments to a Strategic Process
Short-Term Approach Is Not the Answer
Structuring a Value-Based Applications Management Outsourcing Contract and a Draft Service Level Agreement
Components of a Value-Based Applications Management Contract
Figure: Applications Management Process Model
Figure: Operational Processes
Figure: Management Processes
Figure: Applications Life-Cycle Management
Sample Applications Management Contract and a Draft Service Level Agreement
Table: Sample Applications Management Contract Inclusions
Developing Effective Service Level Agreements
Balancing Cost and Flexibility in Outsourcing Contracts
Figure: Hypothetical Cost Curve
Future Outlook
Essential Guidance
Actions to Consider
Learn More
Related Research
Synopsis
Ordering and More Information
Price and Delivery Options


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