Cost Adjustments in Outsourcing Contracts Seen Threatening Bottom Lines

Negotiation process critical to avoiding long-term financial drain from price inflation, TPI reports; analyst offers guidelines for buyers


Negotiation process critical to avoiding long-term financial drain from price inflation, TPI reports; analyst offers guidelines for buyers







Tips for Buyers



  • Determine the appropriate portion of the outsourcing "market basket" subject to inflation/deflation;

  • Select the appropriate index;

  • Build a conservative, flexible approach into the contract.






http://www.tpi.net/pdf/COLA_FINAL.pdf


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