What to Know Before Making that Outsourcing Deal

Filed in archive Outsourcing Advisors on October 20, 2007

This blog post would focus on exactly what the title is saying: the things companies should consider before signing that outsourcing deal. The factors which I am going to mention here was given by Nick Abrahams, partner at Deacons law firm.

Here are the factors which he mentioned:

a. Scope - This means that everything in outsourcing deals would need to be dealt with and discussed as compared to just ignoring it or dealing it in the latter part of outsourcing deals.

b. Liability - If ever something would go wrong, you would be able to devise an approach on how to deal with it in the course of the outsourcing period.

c. IP ownership - IP is very important and should also be discussed before dealing into an outsourcing deal. Both parties should find a way to compromise in order for the IP to be really secured.

d. Termination rights - Not all deals would last forever hence the need to deal with this issue even before it is actualized.

e. Service levels - This more or less a measure of how outsourcing providers are performing and whether or not they meet the terms in outsourcing agreements.

Do you think these tips are helpful? Please do share