Contract Law

Benchmarking Clauses in Technology Agreements

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Benchmarking clause contract

Exclusivity and best service pricing in outsourcing Outsourcing and managed network services contracts are typically longer term arrangements that run for terms of four to seven years. Often customers agree to an exclusive or part-exclusive relationship with a supplier in order to secure the supplier’s best pricing. In return, the customer is usually ‘locked in’ to […]

Contract Law

Legal issues in offshore outsourcing of services

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There are a number of commercial risks and legal issues with offshore outsourcing that all organisations should be aware of prior to signing an outsourcing contract. What is offshore outsourcing? In an offshore outsourcing model, a company engages a service provider to perform business functions (for example, call centres for a telecommunications company or claims […]

Contract Law

7 Steps To Love Your Next Outsourcing Contract

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Customers enter ICT outsourcing contracts for a number of reasons, including to save money, use the specialist skills and experience of a third party supplier, and/or transfer risk to the supplier. In an outsource, a customer will be generally transferring responsibility for non-core internal business functions to the outsourcing provider. It is therefore important to […]

Contract Law

Service Levels: Part 2 – Drafting Service Levels / SLAs Effectively

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Drafting Service Levels That Work Drafting service levels and service level agreements (SLAs) that are appropriate, and managing the service levels correctly, provides a number of benefits for both parties to a commercial IT contract or outsourcing contract. As discussed in my previous article, service levels provide a customer with a way to measure the success of the delivery of […]

Contract Law

Outsourcing Contract Objectives Clause: Targeting Perfection

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Outsourcing contract objectives clause? Have you ever seen an objectives clause like this near the beginning of an outsourcing contract or a master services contract? “The customer’s objectives in respect of this agreement are for the supplier to: (a) achieve optimum value for money for the customer; (b) minimise any ongoing financial liabilities and risk […]