Closing an outsourcing deal is one of the most challenging aspect I've ever witnessed...no matter the size of the deal...this is not just in services firm but in product firms too especially if it is a MNC in developed market jurisdiction!
Why is this so complex? I understood that this has got to do with the legalities and these damn lawyers...they make it so complex on the T&C that it is next to impossible to close a deal...By the time you close the deal we loose our breath and lose any interest in celebrating the win....
Lets look at a comparitive view of a large multinational view to contracting vis-a-vis a typical Indian pure play view to closing a deal:
Multinational view: I call it the pessimist view
1. It follows Murphys law, everything will go wrong in engagement and hence cover your ass as much as you can
2. Excessive mitigation and covering of positions through tight verbiage by the service providers on every possible risk there is...
Pure play view: I call it the Optimist view
1. Business done based on trust, assume everything will go right in engagement
2. Very loose verbiage and cover positions on very big ticket items on the contract that potentially exposes service provider to uncovered risks that leads to significant financial/legal/brand impact.
Who gains from all this: a Lawyer or third-party administrator who makes money out of extensive negotiations between client and service provider. Both the client and service provider loose critical time and money negotiating the contract.
Both client and service provider become so desperate to close the deal, the contract hardly matters and the points of disagreements sound ridiculos as they may have such low probability of materializing in reality...
What has been your view?
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