Outsourcing: Ways to Cut Costs in Troubled Times

Originally published December 16, 2008

Keywords: outsourcing, COLA, currency fluctuation, outsourcing contract

In these troubled economic times, many of you have identified an urgent need to find opportunities to reduce your costs. This Client Alert offers recommendations on ways to save money in your existing sourcing arrangements and by entering into new sourcing arrangements.

Ways to Save Money on Existing Outsourcing Contracts

Companies that have already entered into outsourcing contracts have these opportunities to reduce the costs to be incurred under such contracts:

• Work with the provider to identify ways to reduce the cost of service delivery and pass through the resulting savings to the customer. For example, most Mayer Brown contracts contain provisions requiring providers to work with customers to accomplish cost reduction.