Outsourcing life cycle
Produced in partnership with Bristows

The following TMT practice note produced in partnership with Bristows provides comprehensive and up to date legal information covering:

  • Outsourcing life cycle
  • Characteristics of outsourcing deals
  • Why organisations outsource
  • The life cycle of a typical outsourcing deal
  • Analyse requirements
  • Scope project
  • Commercial considerations
  • Technical considerations
  • Regulatory impact
  • Deal structure
  • More...

Outsourcing life cycle

This Practice Note introduces outsourcing deals and covers the following aspects of the life cycle of the typical outsourcing transaction, primarily from the customer's perspective:

  1. Characteristics of outsourcing deals

  2. Why organisations outsource

  3. The life cycle of a typical outsourcing deal

  4. Analyse requirements

  5. Scope project

  6. Commercial considerations

  7. Technical considerations

  8. Regulatory impact

  9. Deal structure

  10. Offshore/near shore and cloud services

  11. Procurement process

  12. Selection and contract

  13. Delivery and contract management

  14. Contract end/renewal

The outsourcing process is often complex but provided that it is approached systematically with clear goals in sight, it can be managed in an orderly way. Taking a structured approach enables customers to have realistic objectives, establish how to measure the achievement of those objectives and then contract on a basis that will allow those objectives to be met.

Characteristics of outsourcing deals

An outsourcing deal involves the transfer of the responsibility for delivering a service to an external provider (or from one external provider to another).

Outsourcing deals are more complex than straightforward contracts for the supply of goods or services as they often involve the transfer of people, assets and contracts.

Having transferred the service provision and any related people, assets and contracts, the outsourcing contract will provide for:

  1. the buy-back of the outsourced services by the customer

  2. the ongoing management of the supplier and of the provision of the service and

  3. the usual array of contractual

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