July 25, 2005
Outsourcing Contract Essentials: Transparency and Defined Expectations
In recent weeks the outsourcing contract breakup between Dixons and LogicaCMG has the outsourcing community abuzz. In recent days a great deal of new information has come out revealing much of the reasoning for the breakup. Sources have indicated that Dixons was uncomfortable with the lack of transparency in the contract particularly in the area of margins earned and wages paid by LogicaCMG. Additionally, however, it now appears that some of the conflict stems from the fact that Dixons was unclear even with itself about what it wanted to outsource. The move has caused Dixons a great deal of problems in the form of bad press and a number of IT staff who left the firm in anticipation of being let off. The failure of this contract at a juncture so close to completion tells a tale of the need for greater transparency and more clearly defined expectations from both parties. ZDNet UK Reports:
A spokesperson for Dixons confirmed: "We haven't been able to agree terms. It is important for both parties that you are able to achieve a satisfactory outcome and we have come to the stage where we couldn't conclude negotiations."
Read More: Cost and complexity sunk Dixons outsourcing deal
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