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The Toolkit does not aim to establish contract negotiation rules or to suggest one approach above another. However, the Toolkit proposes that it is wise to recognise a delivery partner is a commercial operation and seeks to move its resources to places of maximum return. If a contract is heavily biased towards the organisation then the delivery partner is less inclined to focus attention, operate efficiently or to provide its best personnel.

A contract biased in the opposite direction is not a perfect paradigm for the organisation either. Therefore, it is obviously a cordial and committed balance that we seek in negotiation of contracts. For this, of course, we return to the important topic of the selection of the commercial partner. Their awareness of the organisations need to gain financial efficiencies and the organisations realisation of the commercial objectives of its new delivery partner are important tenets for the foundation of successful mutual collaborative project deliveries.

Applying the techniques outlined in previous sections along with firm collective commercial awareness of the relative positions of the partners is the basis for successful negotiation of outsourcing contracts. However, contracts and agreements fail from time to time so it is wise to use the Toolkit to your advantage.


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Outsourcing Contract Negotiation


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