Our specialist commercial contract solicitors provide advice relating to the laws on outsourcing agreements and they draft those agreements to offer maximum protection to your business.
Outsourcing allows a business to transfer operational responsibility for the provision of a distinct business function, process or service to another experienced supplier of that service, either within the UK or internationally, with a sensible balance of risk and benefits (including potential costs savings).
How can our commercial solicitors help?
We structure and negotiate deals designed to meet business and cost objectives, mitigate business continuity and compliance risks, and comply with regulatory and other legal requirements.
The different types of outsourcing services include:
- People outsourcing – where a business outsources certain people functions over an extended period to non-permanent staff to give support to the business growth aspirations and allow them to focus on their core competencies;
- Project outsourcing – where a business outsources a particular project to an experienced supplier eg. to an IT company;
- Process outsourcing – where a business outsources certain processes to an experienced supplier, eg. HR systems management or customer care services.
Our corporate and commercial solicitors support our clients during every phase of outsourcing – from the initial sourcing assessment, through the RFP process, into contract negotiations, TUPE compliance and completion.
We also regularly handle the restructuring, resourcing, and termination of outsourcing arrangements, as well as the review of incumbent or legacy relationships.
This area is critical now that Brexit is taking. There is a common view that now that we are leaving the EU, it will be very hard to get cost effective labour because freedom of movement will end. So outsourcing to cost effective countries is likely to increase.
Frequently Asked Questions
The RFP Process is a request for a proposal. It is a preferred way for many businesses to decide which supplier they will use. The process itself consists of the client company submitting to a group of preferred suppliers a RFI (request for information), which is a lengthy document asking the supplier to tell its prospective client company about itself. This is a very lengthy set of questions. Then the prospective client will issue the RFP to a reduced prospective set of suppliers. This again is a very lengthy process for clients.
In terms of local legal expertise, it is important to work with a local lawyer, but the contracts themselves will be subject to UK law. The client looking to outsource will have done their own investigations on the jurisdiction to which they are intending to outsource to.