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Media Releases
2008

16 May
2008

Outsourcing – negotiating a perfect fit

Leading UK law firm Shepherd and Wedderburn will advise companies on how best to negotiate outsourcing arrangements and the pitfalls to avoid at a seminar in Aberdeen on 20 May.

The definition of outsourcing has changed dramatically in recent years. It is no longer an after thought for companies wanting to cut costs and avoid the overhead of managing technology. Instead, it has become the integral part of business strategy and increasingly defines how well companies compete in the global marketplace.

Well-managed outsourcing makes commercial sense, but handing an external organisation control over specific business functions can cause problems in terms of service performance, business change and price. It is estimated that as many as 50% of outsourcing deals end badly. This isn’t a reason to reject outsourcing, but it does prove the importance of negotiating the right contract with a potential partner.

The seminar in Aberdeen will provide an overview of the key legal issues encountered in negotiating and drafting outsourcing arrangements from both the consumer and supplier point of view.

Headed by Liz McRobb, a partner in leading UK law firm Shepherd and Wedderburn, the event will be attended by business executives, in-house legal advisers, procurement and outsourcing professionals, contract and commercial managers, logistic managers and IT directors.

Mrs McRobb said, ‘Customers' needs from outsourcing providers are changing, giving rise to new challenges in negotiating outsourcing contracts.

‘Organisations are no longer only looking for cost savings and efficiencies when they outsource, they are also seeking improved processes and business transformation by working in partnership with providers. There are many difficulties in contracting measurements of this type.

‘As many first generation outsourcing contracts that were entered into in the 1990s have come to an end, we are increasingly advising on second and subsequent generation outsourcing transactions where organisations can opt to go with an other partner. This means the outsourced service and employees etc get moved across to the new partner and the issues with untangling one outsourcing relationship and embarking on another can be a legal minefield.

‘This seminar will look at all legal aspects of negotiating a good outsourcing relationship and address issues such as how and when personnel, assets and IP rights should be transferred from the company to the partner, along with the pitfalls to look out for.'

The event, Outsourcing: Current Trends, is being held between 8.30 and 11.00am on 20 May 2008 at Ardoe House Hotel outside Aberdeen. To book a place please visit www.shepwedd.co.uk.


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