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ARTICLE · 30 AUGUST 2007

Negotiating Indirect Procurement Outsourcing Agreements: Differences You Should Know

Mayer Brown
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Indirect procurement outsourcing deals may seem like other standard business process outsourcing deals, but don’t be fooled by the similarities. Indirect procurement is different and requires certain contract terms that are unique from those used in other outsourcing deals.

United StatesEmployment and HR
Rebecca Eisner
Rebecca Eisner
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Keywords:
 indirect procurement, outsourcing deals, structuring, non-transactional, pricing structures, cost savings, warranties, intellectual property

Originally published May 2007

Indirect procurement outsourcing deals may seem like other standard business process outsourcing deals, but don’t be fooled by the similarities. Indirect procurement is different and requires certain contract terms that are unique from those used in other outsourcing deals. This article explains some of the key differences and important considerations in structuring an indirect procurement services contract. But first, a little background.

Indirect procurement outsourcing is expanding by roughly 30% per year, according to Everest Research Institute. The number of standalone procurement deals is increasing, and many other outsourcing deals — including finance and accounting and IT outsourcing — contain some aspect of indirect procurement. Indirect procurement functions are transactional

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