Author: Brad L. Peterson, Partner, Mayer Brown LLP

If you are an outsourcing customer, an outsourcing agreement is like a three-legged stool. Its value depends on what you agree to buy, what you agree to pay and the terms of the contract. Although the agreement and the other contract terms are often extensive, outsourcing customers often underestimate, or even overlook, the value in contract terms. Why Focus on the Value of Contract Terms? Being able to identify, estimate and articulate the business value of the contract terms in an outsourcing agreement can help you to: Make smart choices between lower prices and better contract terms. Balance the desire…

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An outsourcing negotiation is a complex endeavor, with interwoven financial, technical, performance, people, and legal issues. However, after boiling it all down, there are seven very common mistakes both vendors and customers make in negotiating outsourcing contracts. This article will help you spot those mistakes. Then you can correct them in your own negotiating team and exploit them in the other side’s negotiation.

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