Flexible Contracting: Preserving The Ability To Engage In Multi-Process Outsourcing Transactions

Originally published May 2007

Structuring any outsourcing transaction requires careful planning. In today’s environment, outsourcing customers would be well-advised to ensure that their outsourcing transactions are structured to preserve the ability to engage in multi-process outsourcing (MPO) transactions. To preserve such ability, customers should incorporate terms and conditions into their outsourcing contracts that enable ongoing flexibility in their relationships with their outsourcing suppliers.

MPO transactions involve outsourcing two or more distinct processes or functions to one or more suppliers. These types of transactions are likely to increase in the coming years for a number of reasons. Customers are continuing to consider outsourcing as an effective means to achieve increased cost savings, to obtain access to best practices, expertise, innovation and capability enhancements, to standardize functions across their enterprises, and to improve