Alsbridge Reveals the Top Four Factors Impacting Outsourced Applications Contract
Latest report by Alsbridge provides a framework for buyers to use to proactively design, negotiate, and manage Applications Outsourcing contracts.
- Dallas, TX (1888PressRelease) January 03, 2014 - Award winning benchmarking, sourcing and transformation advisory firm, Alsbridge, Inc., today announced release of its latest report - Top Four Factors Impacting Your Outsourced Applications Contract- which provides a framework for buyers to use to proactively design, negotiate, and manage Applications Outsourcing contracts.
The dynamics of global sourcing have significantly impacted Application Outsourcing (AO) in recent years. "Buyers of application outsourcing services need to obtain a global view of the sourcing economy and understand its overarching influences," says Dieter Thompson, President Alsbridge Inc.
The top four factors outlined in this white paper include economic forces, labor market factors, scope variables, and rate analysis. According to the report, economic forces influence outsourcing rates during negotiations and throughout the duration of the relationship. Labor market factors influence labor rates within a specific country, and in larger countries, like India, they can affect rates on a regional level within the country. Buyers and vendors should stay abreast of these labor market factors to effectively negotiate, manage, and deliver AO solutions. While the largest cost components of labor rates are staff compensation and labor-related costs (e.g., taxes and benefits), additional scope variables affecting labor rate pricing are discussed in detail in the report. Primary price drivers for applications outsourcing are: country, standard market roles, and years of experience (YOE): Country; Standard Market Roles; Country Years of experience (YOE).
Alsbridge CEO, Chip Wagner says, "Dynamic market conditions for application outsourcing services require buyers and vendors to monitor labor market factors, outsourcing contracts, and service delivery to optimize the cost/delivery performance." In order to meet initial deal objectives, application outsourcing efforts continue to result in complex business transactions requiring continual oversight by customers.
For further details on the above four factors, download the complete report Top Four Factors Impacting Your Outsourced Applications Contract.
About Alsbridge Inc.
Alsbridge is a global consulting firm that helps companies transform and optimize the way they purchase, manage and leverage technology and business processes. We have over 175 team members on 4 continents serving over 200 clients a year including more than 40% of the Fortune 500. Alsbridge has helped hundreds of companies reduce costs and get more value from their vendors. Our experienced consultants leverage proprietary tools and information databases to identify and engage the optimal vendors for your situation, negotiate best practice terms at fair market prices, and improve the way you work with your service providers. Alsbridge clients utilize the most cost effective and value added sources globally for IT infrastructure services, network carrier services, hardware and software, application support and development, business processes and cloud services.
EDITORS/WRITERS: Journalists interested in covering the above topic or interviewing one of our SMEs please contact:
Scott Tims
Office: 214-378-7970 ext. 278
stims ( @ ) thepointgroup dot com
www.alsbridge.com
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