Benchmarks, Outsourcing, Services, Rates
Using benchmarks to establish rates for outsourcing services
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When outsourcing IT or business processes, contract life is often five years and can be as long as fifteen. This presents both buyers and vendors with a challenge. How can they ensure that the client pays a fair market price throughout, when long-term price changes are impossible to predict accurately? A benchmarking clause enables both client and vendor to carry out an external, objective appraisal of “value for money” during the life of the contract, and for prices to be adjusted based on the findings of the process.
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