Strategic business process and information technology outsourcing transactions are complex arrangements in which a customer entrusts responsibility for a functional component of its business to a supplier for an extended period of time. Unlike a merger or an acquisition which concludes shortly after signing, a strategic outsourcing arrangement is a living transaction that continues for years after the signing of a definitive agreement and leaves a customer reliant on the supplier for the continued provision of the outsourced function. Our broad experience helps clients shorten the sourcing cycle, speed realization of benefits and implement flexible and lasting solutions and relationships that are key for the success of these transactions.
We work with our clients throughout the entire outsourcing transaction, beginning with the development of a request for proposal (RFP) and continuing through the process of drafting, negotiating and executing the master outsourcing agreement. Our role often extends beyond the agreement signing and includes monitoring the service provider’s compliance with its obligations under the agreement, including security requirements and service level agreements (SLAs) and providing assistance with governance matters and dispute resolution. We represent clients in terminating and restructuring outsourcing relationships, moving outsourcing relationships from one vendor to another, and in-sourcing previously outsourced services.
We represent clients from many industries in a full range of outsourcing transactions, including onshore, near-shore and offshore. While most of our clients seek to outsource business processes and IT functions, we also represent providers of outsourcing services in certain niche markets. Our representation of outsourcing companies has given us a greater understanding of providers’ needs and helps us to develop creative solutions to problems. We have negotiated transactions that fall within the following categories:
- Information Technology Outsourcing (ITO)
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We represent numerous clients in outsourcing information technology functions to service providers that possess the scale and leverage to perform the services better and more economically than they can be performed in-house. We have experience with a broad range of ITO transactions, including infrastructure management, applications development and maintenance, desktop outsourcing, managed network services and help-desk functions.
- Business Process Outsourcing (BPO)
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BPO continues to be one of the fastest growing fields of outsourcing. BPO typically includes the outsourcing of human resources, finance and accounting, back-office support, call center services, facilities management, collections and supply chain functions. BPO often involves the movement of personnel from the business that is outsourcing functions to the service provider and can involve sensitive labor relations issues, including negotiations with labor unions, compliance with the WARN Act, Acquired Rights Directive and TUPE. Our experience in assisting companies with BPO transactions cuts across a wide variety of industries, providing us with insight into processes and BPO relationships that has proven instrumental to helping our clients develop efficient, effective and enduring BPO relationships.
- Knowledge Process Outsourcing (KPO) and Business Transformation Outsourcing (BTO)
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Consistent with nationwide trends among leading businesses, our clients are increasingly outsourcing more strategic, technical and data driven functions to service providers. The outsourcing of higher level functions has evolved into two variants of traditional business process outsourcing – knowledge process outsourcing (KPO), which involves the outsourcing of highly technical data-driven or analytical functions, and business transformation outsourcing (BTO), which involves engaging a service provider to "transform" a business unit.