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Outsourcing deal structuring, value creation, contract negotiations, strategy & management

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Required when the outsourcing relationship has reached critical 75% of long term outsourcing deals need re-negotiation between years 3 and 4 of the term! stages, e.g.:
♦ One or more parties do not achieve the economic benefits expected
♦ Material scope increases or decreases are necessary
♦ The arrangement approaches end of term
♦ The Service Levels need to be changed
 


The major sections of the deal are reviewed: 
♦ Governance
♦ Scope 
♦ Service
♦ Pricing
♦ Risk and Controls Allocation

The outsourcing arrangement is mapped against market and best in class. Areas that require remediation or repair are planned and a change strategy is outlined.  If agreed by the client, interviews (open or confidential) are conducted with key client aprticipants, and, if appliicable, with named vendor representatives.

New value creation for participants is explored (e.g.: increase in scope, co-marketing arrangements) 
Create opportunities to develop trust and derive the economic benefits from it.
Rules and processes with a view of simplifying them.
Allow a positive view of market discipline to act as an adaptive stimulus to relationship development.
Position participants to share economically in each other's success rather than benefit from the other side harm
If new transactions are possible, they will be based on new business models developed as above.
Negotiations training (
View Negotiation Approach Summary)
Negotiations strategy
Negotiations
  

 

 

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