Pre-Contractual Considerations For Outsourcing Agreements

The following is a reminder of four important matters for consideration by customers and suppliers prior to entering into negotiations for many types of outsourcing agreements, such as business process outsourcing and facilities management agreements.

Clear service definition

Although the service to be provided is the fundamental purpose of entering into the contract, a sufficiently detailed and clear description of the type and scope of service to be provided is often lost amongst the other, often lengthy and legalistic, components of an outsourcing agreement. This often leads to time consuming and costly disputes, and contract variation discussions with respect to what services are included in the contract price.