- Devising a strategy, Outsourcing is usually a strategic decision taken at the highest levels of an organization. It is often part of a bigger strategy to leverage the company to another level and to concentrate on its core strengths. Alternatively, it could be a conscious cost-cutting measure or even a forced move in order to conserve limited resources. Outsourcing is often a key differentiator that gives companies an edge over competitors. Availing of legal counsel at the time of outsourcing a particular operation, function, or program can prove to be an invaluable decision since many outsourcing projects encounter snags at a later stage, which can be difficult to resolve. These snags may be related to intellectual property rights, licensing requirements, leasing or contractual agreements, and other issues related to outsourcing. A lawyer well versed with outsourcing matters will be able to guide you about the commercial viability of the project as well as the market strategy.
- Re-assessment- Reassessing the company’s internal resources or alternative solutions for outsourcing can often do away with the need of outsourcing. A knowledgeable lawyer can help you study available options.
- The selection process-This is one of the most important phases of the outsourcing process. The company needs to select the service it wants to outsource as well as the appropriate vendor who can provide satisfactory services at a reasonable cost. The outsourcing lawyer can help you identify potential constraints and assist in the evaluation of the project.
- Negotiating the project-This is the phase when the schedules, contracts and agreements are negotiated and may lead to the signing of the final contract. Both parties and their lawyers need to extensively review the entire project before it is finalized.
- Implementing the project: This is the phase when the activities and services agreed upon by both parties begin, and usually passes off smoothly.
- Managing oversights-This is a phase of liaison, contract administration and performance monitoring between the supplier and the client. This is when dispute resolution and contract re-negotiation takes place.
- Build Completion-This is a phase wherein the completion activities that are part of the build period take place. Issues related to late delivery, service credits or service levels, etc could be sorted out by your lawyer.
- Change-This is when all outsourcing contracts will undergo major or minor changes.
- Exit- Most outsourcing relationships end due to a variety of reasons like the passage of time, acrimony, or mutual agreement. Your lawyer should handle this phase carefully.
