This survey was responded to by buyers, clients and 3rd party consultants involved in the negotiation of complex services and outsourcing agreements. The results indicate that a large percentage of participants are not always able to negotiate complete and detailed agreements prior to the engagement of services. Liabilities, scope and service levels appear to be the areas where most negotiations get hung up. Interesting to note is that more than half of the incomplete contracts at signing, never or only sometimes get completed subsequently. The survey results also indicate that there is much room for improvement in handling changes that arise during the execution of services. One final area I'd like to point out is the impact of disputes that arose as a result of contract incompleteness. Margin erosion and unfulfilled expectations appear to provide the most negative impact. Interestingly, only 6% of respondents said that the disputes lead to termination or arbitration/litigation.
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