Recently, news feed reported that a leading Indian pure-play vendor is offering transition service free to accelerate closure of an outsourcing deal. Considering that transition is a capital invested by client for an outsourcing deal, there is a elaborate justification required from the clients board (especially for large outsourcing deals) to pass a decision. In uncertain (read difficult) economic conditions the board is often cautious on approving any capital decisions. It seems the pure play vendor is playing smart by removing the need for any board approval, by offerring to partake in the capital cost. Usually, such freebies are generally not good to the industry as it sets a precedent and all outsourcing service providers will be expected to reciprocate similarly. Now, that the precedent has been set what should one do about transition cost?
A. Also, offer transition for free
B. Run initiatives to cut transition cost
C. Do nothing and wait for the time to pass so the clients will forget that transition can be a free service.
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