Executive Briefings

Does Your Outsourcing Contract Account for Today's Inflation?

Much has been written about inflation in offshore locations, but what about inflation at home? After many years of moderate inflation in North America and Western Europe, it is now at a multi-year high, largely driven by higher commodity prices. Existing outsourcing contracts, signed in the earlier era of stable inflation, may not be structured optimally for the current level of inflation. Both buyers and suppliers need to assess whether their contracts expose them to inflation risk.
Source: Outsourcing Journal

Much has been written about inflation in offshore locations, but what about inflation at home? After many years of moderate inflation in North America and Western Europe, it is now at a multi-year high, largely driven by higher commodity prices. Existing outsourcing contracts, signed in the earlier era of stable inflation, may not be structured optimally for the current level of inflation. Both buyers and suppliers need to assess whether their contracts expose them to inflation risk.
Source: Outsourcing Journal