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ISG White Paper

End of Contract – Now What? 14 Steps to Assessing Governance and Defining a Renegotiation Strategy

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by Cynthia Hollandsworth Batty
At the end of an outsourced services contract clients benefit from hindsight when determining whether to continue with the incumbent provider or make a change. Renegotiation presents an ideal opportunity to address sources of dissatisfaction. However, rather than assume the service provider is at fault, clients would be well-advised to consider that they might share responsibility for some of the relationship’s problems.

Renegotiation is also a perfect time to focus on governance and the relationship, and how to revise both the governance exhibit and operational processes in the next phase. A “back-to-basics” conversation will provide appropriate thoughtful introspection to help the whole service delivery and governance team.

In the cut-and-thrust of daily services management, identifying the underlying problems
in services relationships can be difficult. Root causes are often related to lack of process,
attitudes (on both sides), a need for different measures (service levels often don’t really tell the story), and frequently, the need for different kind of executive engagement.

This ISG white paper identifies fourteen keys to governance success and sets a framework for an internal discussion aimed at identifying strengths as well as opportunities for improvement in the relationship. Presented as an open-ended survey, the questions posed aim to identify key issues honestly that must be addressed from all levels, starting at service delivery and up to executive leadership.