Effective Outsourcing – Practice and Procedures

1. History and Trends in Outsourcing
2. The Outsourcing Decision
   • a. Why outsource?
   • b. Key Objectives
     • i. Cost saving
     • ii. Individual Service Improvement
     • iii. Access to better procurement and consultancy
3. The Outsourcing Process
   • a. Tendering
   • b. Establishing a Base Case
   • c. Making the outsourcing decision – Critical factors in how not to make the wrong decision
     • i. Too high expectations
     • ii. Poor Base Case
     • iii. The need for a Project Sponsor
     • iv. Too quick to contract
4. Tendering
   • a. Principles of Tendering
     • i. Need for Tendering
     • ii. Public Procurement Rules
   • b. From in-house to outhouse
   • c. From existing contractor to new contractor
5. The Negotiation Process
   • a. The need for tendering
   • b. Establishing a team
   • c. Establishing a negotiation strategy
   • d. Project Planning
   • e. Project leadership and Project Sponsorship
6. The legal process
   • a. A document structure
   • b. A schedule structure
     • i. The importance of good schedules
     • ii. Who drafts the schedules? Lawyers or laymen?
   • c. A drafting responsibility structure
7. The financial process
8. Transfer of Assets
   • a. Valuation
   • b. Sale or Sale and Lease back?
9. Taxation and VAT Issues applicable to key sectors
   • a. IT
   • b. Catering
   • c. [others to be developed]
10. Overseas back office outsourcing
11. Key Legal Areas
    • a. Transition
    • b. TUPE issues
      • i. Pre transfer
      • ii. Post Exit
    • c. Services
    • d. Service Levels and KPIs
    • e. Service Credits
    • f. Financial issues
      • i. Early exit
      • ii. Annual Budgeting
    • g. Liability
      • i. General
      • ii. Interaction between Service Credits and general liability
      • iii. Liability issues in particular sectors
      • iv. Warehousing and Logistics
    • h. Change Control
      • i. Key Personnel
    • j. Exit and Termination Issues
      • i. Planned Exits and Termination
        • 1. Migration
        • 2. Exit assistance
        • 3. Right to buy assets of contractor
      • ii. Unplanned Exits and Terminations
        • 1. Breach
        • 2. Frustration and Force Majeure
    • k. Service Improvement
      • i. What is Service Improvement?
      • ii. Typical problems and drafting issues
      • iii. Template
12. Ongoing Performance Management
    • i. The need for a retained organisation
    • ii. Service and Performance Management and Monitoring
13. Risk Management
    • i. Insurance issues
      • 1. Types of policy
      • 2. Double insurance
      • 3. Indemnity to Principals
      • 4. Subrogation

Precedents

• 1. Front End terms for major categories of outsourcing
  • a. IT
  • b. Catering
  • c. Warehousing
• 2. Schedule Templates for the same sorts of contracts in 1. above. With structures and illustrative wording
• 3. Asset Transfer Agreement
• 4. Joint Venture Structure for VAT saving JV for companies with low VAT recovery.