Expecting the Unexpected — Checklist for Pricing Protection

This is the second article in a four-part series that seeks to provide organizations with useful checklists to key components of outsourcing arrangements. We previously discussed ways that organizations can protect themselves at the end of an outsourcing through termination and repatriation terms and conditions. In this article, we explore ways organizations can contractually guard against unanticipated fee increases and additional costs.

Oftentimes, one of the key rationales for outsourcing is cost savings; however, those cost savings will be eroded if the customer ends up paying additional or unexpected charges during the outsourcing relationship. This can occur when the customer requires a service that was not previously contemplated or when there is a misunderstanding between the parties over the services to be provided or the fees payable for those services.