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Underperforming outsourcing contracts straining relationships with CIOs

Gaurav Sharma | Jan. 23, 2014
But outsourcer blames flaws in how contracts are agreed for lowering efficiencies.

"The finding does not surprise me. We have got to create a collaborative and insightful way of managing current performance, future performance, decision making and risk management of these contracts so that we reconcile IT performance and desired business outcomes."

Davies also said that cost efficiency has always been a major driver with outsourcing, but other facets are gaining importance. "Cost efficiencies could be regarded as the 'table stakes' — you need it. But CIOs want to see innovation under the outsourcing contract and process improvements, after all outsourcing is here to stay."

 

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