Key Issues In Outsourcing: A Supplier’s Perspective

By Stuart Pergament and Linda L. Rhodes (Washington D.C.)

In most, if not all, outsourcing transactions, suppliers find themselves in a competitive environment. This environment often involves the issuance by a prospective customer to several suppliers of a request for proposal that likely contains business and legal terms and conditions and requires suppliers to indicate their willingness to accept them. In addition, many prospective customers use advisors, both business and legal, who use solicitation/ negotiation procedures designed to elicit the best pricing and legal terms and conditions for their clients. Most suppliers recognize that the leverage lies with customers, but the more recognized and proficient suppliers have contracting policies that, while flexible and subject to reconsideration on a case-by-case basis, limit the degree of financial and legal risk that they are willing to undertake. While this article does not purport to represent the views of all outsourcing