Alice Khosravy offers the following royalty-free article for you to publish online or in print. Feel free to use this article in your newsletter, website, ezine, blog, or forum. ----------- PUBLICATION GUIDELINES - You have permission to publish this article for free providing the "About the Author" box is included in its entirety. - Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity. - Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only. - If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links. - Please send a copy of the publication, or an email indicating the URL to [email protected] - Article Marketer (www.ArticleMarketer.com) has distributed this article on behalf of the author. Article Marketer does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article. ----------- Article Title: Negotiating Global Sourcing Contracts Author: Alice Khosravy Category: Business Word Count: 402 Keywords: global sourcing, outsourcing, outsourcing contract, outsourcing agreement, contract negotiation Author's Email Address: [email protected] Article Source: http://www.articlemarketer.com ------------------ ARTICLE START ------------------
The negotiation process is just as important as choosing the appropriate outsourcing provider. IT executives often make the mistake of focusing on price when it comes to negotiations with a supplier. When the focus is on price, both parties have the potential of becoming frustrated and disappointed with the arrangement. There are other essential aspects of the contract that should be addressed, in addition to price. Negotiating the contract is vital when it comes to establishing the outsourcing relationship, which usually lasts for many years. Buyers can have greater success during the negotiation process if they understand how to prepare. A global sourcing agreement defines the relationship between the buyer and supplier and the requirements of each party. The buyer and supplier must be comfortable with the terms and conditions that are agreed upon in the contract. The final outsourcing agreement should include such components as the pricing model, scope of work, deliverables, expectations, deadlines, performance measures and termination conditions. Each one of these issues should be thoroughly discussed before signing the contract. There should not be any "gray" areas in the contract, as everything contained in the agreement should be clearly expressed in writing. The buyer can greatly benefit by taking the time to sufficiently prepare for the negotiation with the supplier. Buyers should understand their companies' objectives and needs for the outsourced projects, which will help maintain a better focus on the key issues when negotiating with the global sourcing provider. IT executives should also define and prioritize these issues and their approach and strategy for obtaining their objectives. A well-drafted outsourcing contract is one that balances the interest of both parties. The written agreement should be as balanced as possible, so that the interests of both the buyer and supplier are protected. A strong outsourcing contract can maximize the effectiveness of the arrangement. Before the contract is signed, it should be carefully reviewed, preferably by a lawyer or industry expert. The written contract should include all of the agreed upon terms and conditions to prevent future complications. The negotiation process for global sourcing agreements can be time consuming and it often takes longer than anticipated. Even though suppliers sometimes take a substantial amount of time to respond, buyers should never cut corners when negotiating, as a well-thought out negotiation is well worth the effort A&E Consulting is a full service consulting firm that has been successfully helping clients with their global needs. Visit http://www.globalsourceyourit.com or call 818-572-8399 for more information. ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
