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By Laton McCartney
When was the last time you reviewed your existing outsourcing contracts? Ben Trowbridge, CEO of Alsbridge, a global outsourcing consultancy, says that CIOs need to look at contracts at the end of every year. "You should also do an in-depth review midway through the contract, which is usually after two or two and a half years," recommends Trowbridge. "At that point, the client may have specific requests that weren't covered in the initial agreement."
Typically, during these reviews, outsourcing clients should be on the lookout for red flags and market and economic conditions that can have an adverse impact. "For example, there's the question of currency fluctuations," Trowbridge notes. "There needs to be some discussion of who assumes the risk in case of a currency swing."
Another potential problem on the horizon, Trowbridge tells CIOZone, is the possibility that India may slap taxes on its outsourcing companies. "This has been widely talked about," he says. The added cost of doing business because of new taxes would likely be passed along to customers, he cautions.
Here are six warning signs that CIOs should be on the lookout for, according to Trowbridge.
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