Incentives: Don't Sign An Outsourcing Contract Without Them
- Topics:
- Contracts and SLAs
- Tags:
- Incentive,
- Outsourcing,
- Sales,
- Sales Force Management
- Source:
- Everest Group
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Overview: This Article clearly emphasizes on the use of incentives in an outsourcing contract. There is a belief that such concept will become increasingly popular because they are a great way to manage relationships. If a company is going to consider cash incentives, Buyers should use incentives to balance penalties in their service level agreements (SLA), but if a Vendor is producing beyond the agreed upon levels, Giera believes that supplier should be rewarded with a bonus. Incentives not only balance the sting of penalties, but they encourage the outsourcer to invest both talent and money in the relationship. Incentives are not a one size fits to all solutions. Buyers and Vendors need to work with each other to craft the best solution.
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Format: HTML | Date: Jul 2000 | Pages: 1
