28 June 2012: International Association for Contract & Commercial Management (“IACCM”) recently published its report on current approaches to Legal/Contract Management support in the outsourcing and IT services industry. The study focused primarily on large US and European providers, with some reference to the models being pursued in India.
The executive perception of the importance of contract and commercial capability has increased over the last 5 years. However, this has not always been accompanied by satisfaction over the ability of existing resources and organization to rise to the challenges of today’s markets, nor resulted in clarity over where such support should be placed (for example, within Legal, Contract or Commercial Management groups, or integral to the business units or delivery teams).
Increased regulation (affecting both the industry and its clients), growing reputation and supply chain risks, continuing pressure on margins and aggressive demands on contract terms and performance have combined to raise awareness of the importance of contracting discipline and commercial creativity. Market volatility, client uncertainty and competitive actions have driven a need for greater continuity of resource and oversight throughout the lifecycle of the contract, including more frequent renegotiation.
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