Innovation Agreement Definition

Posted on Posted in Egyéb

This seems like a great idea: continuous improvement and innovation are usually included in two ways in outsourcing contracts. First, the ISG method has become an industry standard for continuous annual improvement of service level performance. We recommend this approach, which has been successfully used for almost two decades. Having only one idea is not enough for the innovation process; Technical feasibility studies must be conducted, a review of contracts to ensure that the idea is really new and is not already taken into account in the agreement, and the financial case to support investments or validate profit-making. The innovation team will reach out to members of the Client`s Service Management & Governance team for support – the contract manager, the CFO and delivery services manager, as well as, often, commercial operators. Maintained functions, such as architecture and security teams, can also be involved on both sides of the relationship. Since these ideas can lead to a reduction in fees for the service provider, these clauses are usually supported by gainshare clauses. In other words, if royalties are significantly reduced, a structured program allows the provider to reap some of the financial benefits for a set period of time after the idea is implemented. Continuous improvement and innovation are creative conditions; Ideas don`t come out of nowhere as services are delivered. Each customer situation is unique and potential innovations must be proposed in the context of the situation. We recommend our clients to focus on innovation in their governance process…