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Long Term Outsourcing Relationships – Customer and Service Provider Concerns

...tp://en.wikipedia.org/wiki/Clock_of_the_Long_Now.) There is a connection between the Long Now Foundation and the outsourcing industry. And no, notwithstanding the secret wishes of service providers, the lesson is not that now is the time to start thinking about 10,000 year contracts. Instead, it is their approach to developing an object that would last, continue to function, and be useful for 10,000 years can act as a guide to the outsourcing ind...
Posted in: Outsourcing

Confidentiality Obligations in Outsourcing Agreements – Part Two

My previous posting examined three issues relating to confidentiality obligations in an outsourcing agreement where care and attention may be needed to ensure that the parties achieve the results they are intending. I want to continue along the same path in today’s posting, looking at four more issues relating to confidentiality obligations in outsourcing agreements that the customer or the service provider do not always get right.  4. Restri...
Posted in: Outsourcing

Vested Outsourcing

...customer and vice versa.” In writing those words, what I had in mind was to explore a newly developing genre of outsourcing known as “Vested Outsourcing”fn. To help with this undertaking, I’ve turned to the colleague who first introduced me to this outsourcing model – Jim Eckler, President of Eckler Associates and a leading expert in outsourcing with over 35 years of experience in the supply chain management field, specifically in business...
Posted in: Outsourcing

Confidentiality Obligations in Outsourcing Agreements

Confidentiality obligations are a fundamental part of all outsourcing agreements. As part of an outsourcing transaction, the customer and the service provider each agree to make Confidential Information available to the other but subject, in each case, to the limitations on use, disclosure and retention that are agreed to in the contract. Unfortunately, customers and service providers don’t always get it right and the parties sometimes find, aft...
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Outsourcing in Legal Publishing – Anything (And Possibly Everything) Goes

...commercial value of their primary law databases is declining. The first big change underway is the scale of the outsourcing. The second is the movement of outsourcing off shore, not only to the United States, but also to India and other Southeast Asian countries. At this point, outsourcing by the major commercial publishers includes everything from housing databases on “global platforms” to the actual building and updating of legal d...
Posted in: Legal Information, Legal Information: Information Management, Legal Information: Libraries & Research

Plus Ça Change

One of the most complicated things to address as part of a long term outsourcing is the implications of change. Gartner Group recognized this when it released the results of a survey in which it found: 55% of enterprises have renegotiated their outsourcing agreement terms within the lifetime of the contract; 15% of such renegotiations occurred within the first 12 months; only 23% of enterprises did not expect to enter into renegotiations; and n...
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Employee Provisions in Outsourcing Agreements

The provisions of outsourcing agreements relating to employees have grown more complicated. There was time, in the early 1990s, when the obligations of the service provider under the Outsourcing Agreement focussed almost exclusively on describing in detail the services to be performed. There was little mention of the service provider employees used to perform the services (or privacy, software or subcontractors for that matter). The times have c...
Posted in: Outsourcing

Service Descriptions in an Outsourcing

Linking Service Descriptions to the Economic Model It is trite to say that in any outsourcing transaction, the service description is critical to the deal. The services are, after all, the essence of the outsourcing regardless of the impetus for doing the outsourcing in the first place (such as cost reduction, technology improvement, business transformation, and so on). The service descriptions are used to establish the framework for the economi...
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Transition Memos – the Lawyers’ Deliverable

On more than one occasion, clients have complained to me about what happens after the outsourcing contract is negotiated. The customer or service provider is sobering up from the euphoria brought on by signing the contract, often after months of intense, complicated discussions. They are starting to grapple with the overpowering reality of managing a complex outsourcing relationship on a day-to-day basis. That is exactly the moment when large co...
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Offshore Legal Outsourcing – Panacea or Pandora’s Box?

...introduce myself. My name is Gavin Birer and I am the founder and president of the first Canadian offshore legal outsourcing company. I am called to the Bar in Ontario and admitted as an attorney in the Supreme Court of South Africa. My legal experience is as a corporate commercial lawyer, practicing in Bay Street law firms and in-house as a General Counsel. This month’s column is going introduce you to the offshore legal outsourcing industry (a...
Posted in: Outsourcing

Reasons for Renegotiating 

..., Dan Logan of Torys talked about the difficulty of addressing the implications of change as part of a long term outsourcing arrangement. Dan referred to the results of a recent Gartner Group survey that indicated: 55% of organizations have renegotiated their outsourcing agreement terms within the lifetime of the contract; 15% of the renegotiations occurred within the first year; 23% of the organizations did not expect to enter into the renegoti...
Posted in: Outsourcing

Mandatory Change in an Outsourcing Relationship

Although it is now customary for outsourcing agreements to include extensive change management provisions, not all of them include “Mandatory Change” or “Directive” provisions. These are provisions that entitle a Customer to require its Service Provider to start work on a particular change on a priority basis and without compliance with the often extensive provisions that have been inserted into the outsourcing agreement specifically to ensure t...
Posted in: Outsourcing