Critical Commercial Terms and Conditions in Outsourcing Contracts
Executive Brief

30 Jan 2024
by Rahul Gehani, Rohan Pant

This Executive Brief is available only to Outsourcing Excellence members. For information on membership, please contact us

A contract delineates the specific terms and conditions governing the services provided by a provider. Consequently, contracting holds significant importance in the strategic sourcing process, encompassing both new deals and renewals.

This Executive Brief lists key commercial terms and conditions that enterprises should prioritize when entering into contracts with a provider. Additionally, it highlights associated principles aimed at maximizing the value derived from an outsourcing relationship.

Scope

All industries and geographies

Contents

This report covers key tenets of essential commercial terms and conditions, based on the analysis of contractual documents in recent outsourcing engagements. The report focuses on the following terms and conditions:
  • Cost of Living Adjustment (CoLA)
  • Foreign exchange adjustment
  • Benchmarking
  • Termination fee
  • Audit clauses

Note: Everest Group publishes Executive Briefs for senior executives from enterprises. These briefs address hot industry topics and particularly challenging issues of the day in an easy-to-digest format.

 

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