Legal Aspects of OutsourcingOffshoring Prof' Dr' Kees Stuurman

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Legal Aspects of Outsourcing/OffshoringProf. Dr.
Kees Stuurman
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Outsourcing Offshoring issues

• Market developments
• Deal structures
• Legal issues hard fast rules

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Market developments

• OO is hot
• Growing number of transactions
• Offshoring is becoming a more regular business

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On the other hand

• Customers gained experience
• Second generation deals emerging
• Partnership needs to be more than a sales
  slogan
• Part of the Dutch customer population critical
  about offshoring (EY IT Monitor)

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Deal structures

• Duration down to years
• More flexibility
• Multi vendor approach
• Costs continue to be critical

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Dealing with legal issues

• Showstoppers works council advice, regulatory
  issues (permits, SOX, ....) etc.
• Must haves intellectual property, liability,
  exits,
• Win/win adequate reporting, change control,
  dispute resolution,

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Legal issues in the transaction lifecycle
Analysis (requirements, due diligence, IP)
Selection (RFPs) (draft contract terms, works
council, permits, ..)
Contracting (negotiation, drafting, planning,
staff, ...)
Execution(monitoring, reporting, change
control, disputes)
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Hard fast rules

• Timing is of the essence (due diligence, legal
  constraints, show stoppers, compliance issues,
  )
• Legal issues do not hide
• Legal expertise should be an integral part of
  your team
• The more early in the process you deal with legal
  issues
• Your position will be stronger
• You will have more options
• And costs will be lower

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Final remarks

• The way legal issues are being dealt with
  (timing, quality) is key to the success of any
  OO deal
• Time and money spent in the contract process is a
  good investment for your outsourcing deal
• There is no absolute guarantee for success in
  outsourcing, but an adequate contract is a good
  start

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Legal Aspects of Outsourcing/OffshoringProf. Dr.
Kees Stuurman