Outsourcing contracts: Six suggested clauses

May 9, 2009

in IT Dept

In researching something, I happened upon an article in CIO Magazine from March 2007: "Outsourcing Contracts: Clause Control," by Stephanie Overby. The article talks about several clauses that outsourcing customers might want in their service contracts:

  • Benchmarking – the right to renegotiate pricing if a benchmark survey shows that the contract pricing is significantly above market
  • Most favored customer [ugh] 
  • Cost-plus pricing
  • In-sourcing / re-sourcing right
  • Continuous improvement
  • Mandatory reference – the outsourcer must use the customer as a reference at least X times a year
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