Info-Tech research shows that over 50% of small- to mid-sized enterprise (SME) outsourcing projects fail to meet expectations. Increase your chance of project success by using key contract clauses to mitigate outsourcing risks.

What Are the Risks?

A successful outsourcing contract must be flexible to ensure that the evolving business needs of a typical SME can be accommodated within the contractual relationship. In an attempt to develop a flexible contract, however, many organizations forget to identify risks and fail to build risk mitigation tactics into the contract. As a result, the outsourcer and the company providing the service cannot respond effectively when a risk arises.

During the contract development phase, the organization’s main objective is to negotiate a low-risk relationship that can be managed based on business-driven service levels. Building the following key sections into...