How to Build a Better IT Outsourcing Benchmarking Process

As customers look to take advantage of a competitive IT outsourcing market, benchmarking is more important than ever. Service providers and customers are exploring ways to build a better benchmarking process that will benefit all parties.

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Benchmarking is an important tool to ensure competitive pricing over the course of an IT outsourcing deal. And while benchmarking clauses remain standard in most outsourcing contracts, fewer customers have been invoking their rights to compare their service provider's costs to market averages in recent years.

"Partly this was a function of the recession. Consulting budgets fell victim as companies were squeezed for resources, so overall there was little being done in the way of benchmarking and related services," says Howard Davies, managing director at outsourcing consultancy Alsbridge. "CIOs were trying to do things on their own and negotiate their contracts without the benefit of external data."

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