Mega-deals - How to Re-Negotiate large Outsourcing Contracts

Negotiating with large Outsourcers is not an every day occurrence for most IT leaders. Two major case studies, one, covering the biggest single Outsourcing Contract worldwide to date, followed by an afternoon of shared real experience from procurement specialists; uncover most of what you need to know before facing the vendor, (for whom this probably is an every day occurrence).

The two case studies present two very different scenarios. The first involve a worldwide pharmaceutical company and their existing supplier IBM. A strategic approach was taken to manage the preparation (which included setting Key Deal Principles), and negotiation over a two year period. The second case study from the Transport sector was conducted under severe time constraints but with set savings targets, and involved multiple outsourcers. The afternoon discussion covers the arguments for and against changing the Outsourcer, setting objectives with stakeholders, the role and composition of the negotiation team, the use of outside experts, managing the process, and finally contract clauses to die for and the ones to avoid.

Contributions from 21 Contract and Procurement Executives from 16 organisation, many of them global made up this comprehensive set of reports.