Outsourcing: Lessons Learned and Pitfalls

1
OutsourcingLessons Learned and Pitfalls

• Herald Jongen
• Platform Outsourcing Nederland
• Seminar juridische aspecten van outsourcing
• 18 januari 2006

2
Pitfalls

• Service Description not detailed enough
• SD is the bible
• But flexibility required
• Even best agreement not enough without SD
• Client should focus on what instead of how

3
Pitfalls

• Unrealistic service levels
• Too many service credits
• Focus on essential levels
• Planning to tight
• Creates pressure on client
• Delay unprofessional

4
Pitfalls

• Start with very one-sided agreement
• Vague agreement
• Structure of agreement too complicated
• No legal input on schedules

5
Pitfalls

• Governance lacking
• Project is moving target
• Flexible agreement required
• No post contract management
• Different kind of management required
• Focus on cost only
• insufficient margin Supplier

6
Pitfalls

• separate teams commercial/legal
• This results in delays
• Mixed teams work best
• This is not an MA deal!
• Adverserial approach

7
Lessons Learned

• Start working on Service Description earlier
• Start discussions on pensions sooner
• With the right advisor for the Supplier
• Do not over-plan internal meetings
• Leave margin for the Supplier
• Good governance post-signing is essential

8
Lessons Learned

• Investigate technical infrastructure early to
  identify data transfer problems
• Client should involve higher/highest management
• Do not sell savings too early to management
• Have an eye for the clash of cultures between
  Anglo American law and continental law
• Some suppliers take more time than others

9
Platform Outsourcing NederlandSeminar juridische
aspecten outsourcing18 januari 2006

• Herald Jongen, Partner
• Allen Overy Amsterdam
• herald.jongen_at_allenovery.com