Outsourcing Contracts and Negotiations Getting More Complex

28.04.2012
Given the maturation of the IT outsourcing market and the introduction of more standardized offerings like , you might assume that negotiating IT service deals is getting easier.

Not according to the lawyers hammering out the agreements.

reports that 41 percent of outsourcing attorneys surveyed for its 2012 Legal Pulse report indicated that complexity in contracting for outsourced servicesÂ?as evidenced in things like service levels, contract structure, , use of global sourcingÂ?has actually been increasing. (The survey included outsourcing attorneys at 31 law firms.)

Sure, buyers and suppliers are more experienced and new out-of-the-box services are gaining traction. But that may be increasing . More sophisticated buyers are seeking higher-value benefits from outsourcing, globalization is increasing, and business leaders are sending more complex functional and process work out the door.

"As buyers gain more experience they continue to push the envelope in terms of scope, complexity of work outsourced, number and diversity of service providers utilized, geographical scope and mix of service delivery models. Complexity comes with the territory," says Stan LePeak, KPMG's director of research for advisory services. "So while the outsourcing market is maturing, it is not necessarily getting simpler, easier, or safer."