1. CORE Discussion Forum: How to Keep Your Outsourcing Contract Current
September 29, 2016

2. Overview Sources of currency pressure
Contractual levers and release valves
Strategies for maintaining contractual currency
Panel discussion

3. Sources of currency pressure - internal
Business transformation
re-organizing business units
implementing new processes
launching new products
IT transformation
moving to the cloud
standardizing platforms and applications
implementing data analytics
Cost-cutting
Growth or acquisitions

4. Sources of currency pressure - external
Changes in service delivery models
Changes in technology capabilities
Market disruptors
Regulators
Increase/decrease in market prices
Security risks

5. Contractual levers and release valves
Traditional
Term/termination
Change management
Exclusivity and competition
Benchmarking
Scalability of technology or services
Emerging/Re-emerging
Alternative pricing models
Flexibility of delivery methodology
Governance processes
Opportunity and gainsharing clauses
Incentives for suppliers

6. Strategies for maintaining contractual currency - traditional
Shortened term and renegotiation cycle
Benchmarking
Technology currency obligations on the supplier
Take advantage of competition-based leverage
Termination rights for specified events (e.g., regulatory change)
Change order procedures

7. Strategies for maintaining contractual currency – emerging/re-emerging
Outcome-based delivery model and pricing (i.e., focus on business impact, not unit of consumption)
Transformation planning cycles (i.e., take the long view)
Governance focused on anticipated currency pressures
Sharing efficiency gains with the supplier
Market assessments (distinguished from formal benchmarking)

8. Panel Discussion