Neil Barton

Friday, May 16, 2008

Two New Benchmarking Articles

Two new articles about benchmarking were published in the last few months.

"How We Compare: The Use Of Price Benchmarking By Outsourcing Vendors" was produced by IDC Canada and is available to IDC subscribers. It reviews the role of benchmark clauses in outsourcing contracts, and price benchmarking teams within outsourcing vendors. There are two new insights I hadn't seen before. Firstly, less than one in five customers makes use of their benchmark clause. Secondly, only one in six benchmarks finds that the outsourcer's price is outside an acceptable range.

An apparently un-related announcement from IDC Australia announces their entry into the market.

"Benchmark Your Outsourcing Contract: Clauses" is the second of a two-parter from Dr. Sara Cullen at Cutter, and is available only to Cutter customers. Dr Cullen reviews two benchmark clauses, describing one led to an unsuccessful benchmark, and offering another one as a model. Both her clauses have the huge merit of being short. Far too many benchmark clauses these days are 12 pages long, while containing only one page of useful provisions. Dr Cullen's recommended model, however, is a bit too short for me, and doesn't answer the Six Questions essential to any benchmark clause which I described in "A Benchmark For Benchmark Clauses".