IT Outsourcing

IT Outsourcing

The Shoosmiths technology team provides pragmatic, commercial advice on the legal and commercial risks associated with business critical IT outsourcing projects, such as:

  • the pricing, reputational impact and service quality issues regarding offshore, near shore and onshore outsourcing approaches
  • data privacy and data security risks associated with transferring customer data outside the EEA and the security measures implemented by service providers
  • the management of multi-sourcing arrangements (including the use of SIaM models) including the use of OLAs between service providers to encourage collaborative working
  • pricing structures that anticipate business change and incentivise service improvement and cost savings through the use of gain sharing and "vested pricing" methodologies
  • service level and service credit regimes which incentivise good performance and, where a business benefit is derived, reward exceptional performance
  • the practicalities of step-in rights and other contractual remedies to protect business continuity
  • the importance of exit management including knowledge transfer and minimising business interruption

We work closely with in-house legal teams and our clients' broader business teams to ensure that the key business risks specific to the client are understood and are contractually addressed. In our experience many IT projects fail due to a lack of alignment between the contract terms, the service description, service levels and charging model. We take a holistic approach to the contractual negotiation process and understand the importance of these key schedules.

We also use our unique proprietary "Convergence" methodology to manage the entire procurement process and to simplify the stakeholder reporting process.