Should an Outsourcing Company renegotiate a contract with a client, or should it not to renegotiate and look for more clients instead??
Both situations are normal issues at business deals in Outsourcing companies, much more if we take on account that there are many outsourcing companies competing for a better position in the global market. Now which could be the best decision??
If the outsourcing company decides to renegotiate with the client, there will be more clients interested about the good service for a low price, which will result in more clients, more money and lots of work. It sounds good just because the Aim of an outsourcing company must be growing day by day, giving a good service.
The second decision, (it is not to renegotiate) could end in termination of the contract. It will force the company to look for more clients but also it will give a high status depending always on the high quality of a given service. This decision holds a high risk, taken on account that there are many outsourcing companies competing for a better position in the global market, offering low prices for high quality of services. The hoped result of this decision must be to become the best outsourcing company in the global market, which offers the best quality service to companies that do not care about how much do they have to pay, as log as the service deserves it. There is a high risk for a good prize.
However, the dramatic changes that the global market and technology offers day by day, push the companies to look at low prices ever, and the same issues pushes the outsourcing companies to offer a better service always; this phenomenon, means that the second decision holds a very high risk until making it utopian and almost unreal.
While the first option agree with the current situation of the global market (high quality service for low prices). Now about the increase of work that it will bring to choose the first decision, could be fixed by hiring more employees, letting the outsourcing company grows as it might do, according to the Aim.
In that order of ideas, the recommendation is to renegotiate the contract, keep giving a high quality and hire more employees in order to attend more clients. This decision will end in a significant growing and for sure more contracts and money.