Outsourcing Agreements

Outsourcing is the transfer of internal functions to an external entity specialising in that operation. Outsourcing may be in the same country or another country. Functions of a business that are typically outsources are:

• Information technology
• Website hosting
• Telecommunications
• Financial services
• Business processes

For outsourcing projects in information technology, website hosting or telecommunications, please visit our Information and Technology page for specific expertise in this area.

Outsourcing comes in a variety of forms but most of the time includes the transfer from a business (the customer) to a third party (the supplier) of the operational responsibility for the provision of a distinct business function, process or service. Often, certain key employees also transfer with the outsourcing process to ensure certain key skills or knowledge are passed onto the supplier. Other assets may also transfer under the agreement.

Outsourcing arrangements may last for a small term or it could be for several years. The amount of time that will be required from professional advisors and managers within your business should not be underestimated. Typically, there are six phases to outsourcing.

• analyse requirements
• scope project
• procurement process
• selection and contract
• delivery and contract management
• contract end/renewal

Businesses are encouraged to spend the time on the first three phases. In respect of contractual issues, our Commercial team can work key requirements identified in the three previous stages into a fully fledged and flexible outsourcing agreement, alongside a detailed SLA (Service Level Agreement) for the supplier to work with.

Our team can also assist with provisions relating to the latter stages of an outsourcing arrangement, including the expiration or renewal of your arrangements, ensuring any transitional provisions required are effected with minimal disruption to your business, and we are always on hand when things are not going as well as anticipated and remedial action is required.

Our expertise with Outsourcing Agreements:

Here are a small selection of the types of clients we have acted for and the work we have done in this area:
• We regularly advise independent schools on the outsourcing of their catering arrangements, including the preparation of contracts and the provision of advice on related matters (for instance, the TUPE regulations).
• We acted for an office supplies and services provider in outsourcing agreements involving customer business critical IT systems.

Initial Discussion

Should you have any queries regarding outsourcing agreements, please get in contact with Robert Capper, head of the Commercial Department, for an initial and no obligation discussion either by phone on +44 (0) 1905 744814 / +44 (0) 7909 970323 or by e-mail at rcapper@hcrlaw.com.