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ARTICLE · 04 AUGUST 2009

Troubled Outsourcing Arrangements: Strategies and Tips for Managing Difficult Issues

Mayer Brown
Mayer Brown
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There are a number of practical steps that outsourcing customers can take when an outsourcing relationship develops serious problems that cannot be solved through normal governance processes.

GlobalEmployment and HR
Rebecca Eisner
Rebecca Eisner
Daniel Hildebrand
Daniel Hildebrand
Joe Pennell
Joe Pennell
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Originally published 28 July 2009

Keywords: outsourcing, outsourcing customers, governance, disputes, outsourcing relationships

Overview

There are a number of practical steps that outsourcing customers can take when an outsourcing relationship develops serious problems that cannot be solved through normal governance processes. By using a step-by-step framework for managing disputes, customers can get their outsourcing relationships back on track. Alternatively, they may use these steps to pursue other alternatives (such as removal of affected scope) in an organized, minimally disruptive manner.

How Did We Get Here?

Problems develop in outsourcing relationships from a variety of unfortunate circumstances, such as: (1) mismatched expectations between the customer and the supplier; (2) changes that were not anticipated at the time of contract formation; (3) competing internal goals of the customer (for example, transformation versus cost savings); (4) poor

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