How to Guarantee Bad Performance From Your Vendors
A well-crafted master services agreement for outsourced services can create a powerful alliance between you as the customer and the service provider or vendor, writes Matt Hafter for Thompson Coburn LLP. Then there’s the other kind of agreement.
Writing with what he calls “hearty dose of well-meaning sarcasm,” he highlights a few of the pitfalls that will likely or almost guarantee an unsuccessful relationship with your vendors.
As an example, his first point is, “Make sure the business unit using the services stops their involvement in the procurement process after the RFP.”
Another is, “Use the word ‘penalty’ to describe fee credits for service level failures.”