In the current economic environment, everyone is looking for ways to reduce costs. CFOs are looking at outsourcing deals, along with every other external spend category, and assigning cost-reduction targets. How the parties go about achieving those, however, makes a world of difference in whether those savings are real and sustainable, or whether they come with user dissatisfaction, damaged relationships, and diminished collaboration around even greater savings.
When customers simply demand that their supplier cut its price— without engaging in a constructive exploration of how the customer can be less expensive to serve, how an increase in scope might actually produce an overall savings, how bringing some activities back in-house or shifting them to a different specialist might help both sides—they invite the supplier to choose between losing money on that business or finding its own ways to cut the cost of providing the service, in ways the customer might not necessarily welcome.
Register to Read