Brad L. Peterson, Partner, Mayer Brown LLP
If you are an outsourcing customer, outsourcing contracts are like a three-legged stool. Their value depends on what you agree to buy, what you agree to pay and the terms. 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 …
David Mitchell, Senior Consultant
While reducing cost is typically the primary benefit of outsourcing, you also want outsourcing agreements that allow you to realize your immediate and long-term delivery needs, provide contract flexibility and ensure that you receive maximum value for the money you will be spending. To meet those objectives, pay careful attention to the five “gotchas” noted …
Outsourcing Center, Kathleen Goolsby, Senior Writer
An outsourcing provider’s quality of services and the achievement of the agreed-upon mutually beneficial objectives are essential to success. But there are additional actions that service providers and buyers can take to boost the return on investment and increase the life expectancy of their relationships, that is, strengthen outsourcing relationships. To identify these relationship-strengthening actions, …
Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer
There are always unanticipated challenges in even the most well-thought-out transition. This relationship faced two major ones. First, a software vendor tried to extract $300,000 from Dell Services by forcing it to pay a licensing fee. Then, the global recession changed everything. The successful solutions were a harbinger of good things to come.
Outsourcing Center, Kathleen Goolsby, Senior Writer
Giving up control over the outsourced process is a basic principle in how outsourcing works, but many buyers find it difficult to do this at the outset of a relationship. An Outsourcing Center study looked at the factors that cause initial discomfort and what makes a buyer feel comfortable enough to turn over control to the provider.
Outsourcing Center, Kathleen Goolsby, Senior Writer
Companies are facing new considerations in their decision making at different points in the life cycle of outsourcing. Pricing models, controllability of offshored work, managing outsourcing relationships, and a new source of value creation will impact decisions in 2009. But the biggest impact on decision making will come from a watershed event regarding platform BPO, which occurred in 2008. Here’s what you need to know to be ready for outsourcing decisions in these aspects.
George Atis, Chairman, Outsourcing and Technology practice groups, McMillan Binch LLP
Attorney George Atis believes contract negotiation styles should change. His vision of a more collaborative style can cut months from the negotiations and provide more harmony after the lawyers go home.
Stacy Schultz, Attorney, O'Melveny & Myers
Although it’s best to retain outside counsel with outsourcing expertise, Attorney Stacy Schultz of O’Melveny & Myers explains the unique issues that buyers’ corporate in-house lawyers need to know before becoming involved in constructing an outsourcing contract.
Michael E.C. Moss, Gordon & Glickson LLC
Ask anyone how long it takes to negotiate an outsourcing deal, and the answer will likely be the same: much too long. In fact, some would say, the outsourcing will take at least as long to negotiate as you have time available to negotiate, and probably longer.
Brad L. Peterson, Partner, Mayer Brown LLP
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.
"*" indicates required fields