Companies looking to maximise the value of outsourcing relationships need to undergo a renewal of the values of the relationship in the third or fourth year of the contract, a conference on the subject has been told.
Addressing the Forrester's Services and Sourcing Forum in Nice, Cognizant vice president Malcolm Frank advised that there was a danger of a "three or four year itch" that could see the benefits of outsourcing evaporate unless the arrangement was renewed, vnunet.com reports.
He stated that a firm should either make the outsourcing company fit in with its way of working, or get the company to fit in with the outsourcing company's way of operating, but avoid a compromise in between "because this is where things really going wrong".
In related news, Capita has announced an increase in outsourcing business this year, with new contracts signed in 2007 worth a total of £1.9 billion, comoared with £1.37 billion last year.
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