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Companies Must Focus on Strategic Contract Management

by: Karen Cayamanda

Friday, August 28, 2009 | Outsourcing News |

Strategic Sourcing Contract Management

Fifty-five percent (55%) of businesses do not give enough attention on the strategic management of outsourcing contracts. Instead, they focus more on the operational aspect. This is based on a Gartner survey of companies from different industries worldwide.

According to Frank Ridder, Gartner research director, "many organizations struggle to develop an effective and efficient sourcing environment, which is necessary to achieve positive sourcing outcomes." He added that companies fail to manage outsourcing relationships effectively because service providers usually tell buyers that they can deliver more than what they are actually capable of.

To have an efficient and long-lasting outsourcing relationship, Ridder suggested that sourcing activities must be in line with business goals and a flexible sourcing environment must be established to be able to adapt to the market and organization.


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