Controlling the Total Cost of Outsourcing with Your Contract
The overall price you pay for the services that your outsourcing partner will provide over the lifetime of an engagement is commonly referred as the total cost of outsourcing, or TCO. Some of this money will go directly to the vendor, and some will cover associated expenses, such as change management, staff retention, or fees to third parties providing governance.
Your contract—the MSA—is one of the most powerful tools that can help you minimize TCO. So let’s look at the contractual elements that can have the most impact on TCO:
Definition of services. This element is by far the most important part of the contract and, at first glance, appears to be the most straightforward. In ...
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