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Outsourcing

Outsourcing remains a powerful tool for businesses looking to reduce costs, access specialist expertise, and focus on their core operations.

But success depends on properly structured contracts, balanced risk allocation, and practical provisions for transition, service delivery, and exit.

We help clients get outsourcing right — whether they're entering new arrangements or untangling existing ones.

Some areas to be aware of when considering outsourcing:

Specification vs requirements    
See our detailed breakdown on the importance of specification vs requirements

Due diligence    
Conduct thorough due diligence on potential IT suppliers, including their qualifications, methods, staff details, management approach, pricing, and key assumptions. Use a detailed Invitation to Tender (ITT) to gather comprehensive information from IT suppliers.

Service levels    
Define key performance indicators (KPIs) that address essential elements of the IT services and standards. Use service credits to address potential failures by IT suppliers without resorting to legal action or terminating the agreement.

Subcontracting & supply chains    
Outsourcing providers often rely on a network of subcontractors. It’s essential to control who they can use, ensure flow-down of obligations, and maintain visibility and accountability across the supply chain.

Intellectual property rights    
Define ownership, licensing, and usage rights for any technology, content, or data created or used during the outsourced service — particularly important where automation, AI, or bespoke tools are involved.

Audit & access rights    
Customers should have the right to audit the service, systems, and processes used — whether for internal assurance or to meet regulatory obligations.

 

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    I have had the pleasure of working with Deryck Houghton on a wide range of contentious and non contentious legal matters. I have always found that...

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    Capita Group plc

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    Chambers & Partners, 2024

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