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Benchmarks Still Count: Keys to Effective Use of Contractual Measurement Clauses

Rapid advances in technology, improvements in operating processes, and increased competition are all driving declining market prices for IT services. In this environment, predicting the fair value of services to be provided in the future can be difficult. Options to ensure that prices for outsourced IT services remain competitive over time may include negotiating short‐term contracts and frequently re‐bidding, or negotiating long‐term contracts and benchmarking competitiveness of prices on a regular basis.

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