Considering an alternate vendor is now becoming a norm for older
deals (3-7 years) or ones that were not signed through structured
competitive vendor selection process. The service delivery and pricing
models have evolved over a period of time. Also the clients outsourcing for the second time are more aware of what they want from their vendors and have
developed capabilities to manage vendors over a period of time.
A
lot depends on the engagement scope and client's priority - however any
good deals signed will have some variation of these aspects
- Flexibility of skills on a set forecast
- Productive hours instead of FTE concepts
- Focus on relationship management, governance and transparency
- Greater involvement with offshore teams - recognition and rewards
- Credits and penalty on performance
- Infusing CoEs and Vendor innovation
- Pay for performance/Outcome based models
- Retaining key incumbent vendor employees
Switching to new vendors also comes with realization that the relation with the incumbent is beyond mending. A lot of focus is made to implement the lessons learned from broken deal and to start new relationship at the right note. Clients also focus on streamlining internal processes that would result in making the vendor more effective and efficient.