By ProBenchmark

Benchmark clauses have long been included in outsourcing contracts as a way to ensure the agreement remains competitive over time.  The clause, when written and executed properly, ensures that the vendor's services and price remain competitive over the term of the deal.  This allows for clients and vendors to sign longer term contracts, thereby creating greater relationship stability for both the client and the vendor.

When structured properly, a third-party clause provides clients with a unilateral right to test the contract against the market to ensure that it is competitive. A third-party benchmark clause, whether executed or not, helps to ensure the agreement remains competitive over time.

So what should be contained in a benchmark clause? This research paper includes considerations for benchmark best practices that have stood the test of time and are critical to vendors and clients alike. These recommendations based on Alsbridge's extensive experience will ensure a benchmark clause provides the upmost value.