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Long Term Outsourcing Relationships – Customer and Service Provider Concerns

...ers that enable the service provider to provide cost effective services may evaporate in the future, leaving the service provider supporting a costly, dead-end service. Or changes in the customer’s business may undermine the outsourcing by removing, from the scope of the outsourcing, services that were fundamental to the service provider’s solution. And, again at the macro level, changes across an entire industry segment can fundamentally alter...
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Confidentiality Obligations in Outsourcing Agreements – Part Two

...tomer has adopted a multi-sourcing strategy; and (viii) as part of a re-procurement where the customer is not renewing the outsourcing agreement. Some of these situations are likely to be covered by express provisions of the outsourcing agreement, e.g. outsourcing agreements normally provide that it is not a breach of the confidentiality obligations for a party to disclose confidential information to the extent required by applicable law. Other...
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Vested Outsourcing

...It’s difficult to answer that question, in my view, and one that has implications for customers in terms of their short-term and long-term vendor strategies. What I do think is clear, and what has always appealed to me about outsourcing, is that the outsourcing business model is continuing to evolve, and the newest entrant to this portfolio is vested outsourcing. Look for it as part of deal on your street corner, coming soon!...
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Confidentiality Obligations in Outsourcing Agreements

...use or disclosure of the outsourcing agreement (which consent may not always be forthcoming or be given subject to restrictions that make it unworkable). There is one other further aspect of this issue – declaring the outsourcing agreement to be confidential – that private sector service providers entering into outsourcing transactions with government entities should be aware of: it usually doesn’t work, at least with respect to the...
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Outsourcing in Legal Publishing – Anything (And Possibly Everything) Goes

...en legal publishing companies are run by persons untrained in and largely unfamiliar with either the law or with legal publishing, who have outsourced the core business and the expertise with it. Opportunities for innovative outsourcing Outsourcing should offer the publishers opportunities for innovation. One option worth exploring is “collaborative outsourcing” whereby competing publishers source selected content either from the...
Posted in: Legal Information, Legal Information: Information Management, Legal Information: Libraries & Research

Plus Ça Change

...to address the nexus between M&A activity and the outsourcing itself. If an enterprise has entered into an outsourcing, what happens if it wants to sell an affiliate where that affiliate is also a beneficiary of the same outsourcing? Has the outsourcing made the affiliate unsalable in the sense that the running of its business is dependent on the outsourcing for some important business function? What happens if the enterprise acquires a new...
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Employee Provisions in Outsourcing Agreements

...s obligations to disclose past misconduct, that also need to be considered but that are beyond the scope of today’s posting. I. The Customer Perspective The customer’s objectives in negotiating the employee provisions of the Outsourcing Agreement depend of course on the circumstances of the specific outsourcing. It is not uncommon for the customer’s concerns to include the following: (1) Avoid a bait and switch: The customer may be looking for...
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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...
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Transition Memos – the Lawyers’ Deliverable

...ms The part of the Transition Memo is intended to summarize key aspects of the contract. As set out above, this will depend on the contract. However, a sample of the issues that this part may cover includes: (i) scope of the outsourcing relationship. This section should describe the current scope of the outsourcing relationship and the impact of any “sweeps” clause. It should also refer to any scope that was originally part of the outsourcing...
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Offshore Legal Outsourcing – Panacea or Pandora’s Box?

...be obtained at a lower cost to the client. Gavin Birer Amy. Your comments are insightful, informed and in my view, right on the money. This is an exciting time to practise law. Thanks for your contribution. legal outsourcing Great point to Managers who thinks outsourcing is the solution for cost cut down. Many companies realized the issues and loss with outsourcing by now legal outsourcing...
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Reasons for Renegotiating 

...software developers, significant delays in development or the failure to implement new systems in a timely fashion. These are just the sort of consequences that can easily lead to the necessity to renegotiate aspects of the outsourcing agreement. The outsourcing agreement should include, as part of the change processes, specific procedures for dealing with change requests that are not accepted by the customer. It should no longer be sufficient...
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Mandatory Change in an Outsourcing Relationship

...onship and undermines whatever trust and good will exists between the parties. Service Providers may absorb costs for which they should rightfully be compensated if the costs can only be recovered by making a claim under the outsourcing agreement’s dispute resolution procedures: the damage to the outsourcing relationship is too high a price to pay. Therefore if the procedure to compensate the Service Provider for its efforts in implementing a...
Posted in: Outsourcing