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Outsourcing Economics: The Business Case for Baselining

By the third year of a long-term outsourcing relationship, significant tensions often exist between clients and outsourcing vendors. Long-term contracts are often weighted to deliver the largest profits during the latter years of the term. Compass believes that periodically undertaking a detailed baseline analysis or benchmark review can benefit both client organization and vendor. Back-loaded contracts have been “back-loaded,” meaning low prices – and small profit margins – in the early years are offset by steady price increases over the course of the contract.”]

Source: https://www.csoonline.com/article/2116122/outsourcing-economics–the-business-case-for-baselining.html

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