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Benchmarks Evolve: Effective Analyses Deliver Real-Time Validation and Transparency

In recent years, ISG Research shows outsourcing contracts have consistently gotten smaller in value and shorter in duration. In this environment, are traditional benchmarks still relevant? Specifically, should enterprises invest the resources to undertake a detailed, rigorous analysis of pricing and service levels halfway through a contract, if the contract value is relatively small and the term is relatively short? Moreover, with an increasingly higher volume of contracts in the mix, don’t CIOs risk getting bogged down by conducting too many benchmarks?

While market conditions are changing dramatically, benchmarks have similarly evolved and continue to deliver significant value when properly managed. Both clients and providers have matured in their approaches to benchmarking, specifically in terms of viewing the exercise as a collaborative and mutually beneficial process. Automation, moreover, is having a dramatic impact on benchmarking capabilities by enabling real-time data collection and continual assessments of performance. 

This ISG white paper examines the changing role of benchmarking in the context of recent market trends and increasingly dynamic business requirements.