Over the course of a typical five-year contract, significant shifts and changes occur in the global sourcing environment, such as opening up of new destinations, emergence of new vendors, introduction of new services, development of new methods and tools, innovative platforms and technologies, evolution of new engagement and pricing models, and so on. In addition, organizations themselves experience profound change in such areas as business processes, organizational structure, business strategy and competition. Consequently, when a services contract is due for expiration or renegotiation, organizations have a timely opportunity to fully review their sourcing model and re-align sourcing strategies with their business.

This Neo Insights examines the 3 stages of an effective sourcing contract renegotiation process: Discovery, Impact Analysis and Execution. The framework evaluates the current and emerging global sourcing environment, as well as the current strategy and functional needs of an organization in order to offer concrete recommendations that will re-align sourcing strategies with strategic business goals.