Outsource Issue 21 - (Page 98)

Why smarter procurement means better outsourcing In order to make outsourcing work as it should – for both buyer and provider – it’s key to get an agreement spot-on right from the word go. In fact, as Rob Sumroy and Natalie Donovan explain, it’s best to get it right even before there’s an agreement at all… Rob Sumroy, Slaughter And May Rob Sumroy is a partner at leading international law firm Slaughter And May, advising on all aspects of IP , IT and data protection. He is a member of the PLC, IPIT and Communications Law Editorial Board, and a regular writer for Outsource. Natalie Donovan, Slaughter And May Natalie Donovan is a professional support lawyer working in Slaughter And May’s outsourcing practice. She specialises in computer and IT law and intellectual property law. A 98 ●● ● s ‘UK Plc’ tightens its belt, and the threat of cost-cutting looms over nearly all public sector services and many private sector organisations, talk has once again turned to whether outsourcing is the panacea to at least some of the UK’s economic ills. But customers in both the public and private sector are more experienced at outsourcing now, and many know first-hand that outsourcing is not a quick fix: it takes time and money to get the procurement process and contract right and additional time before any benefits are achieved; and it is costly and disruptive if it goes wrong. Getting it wrong often means bad relations with the supplier, a failure to achieve expected cost savings and/or service improvements, additional costs or worsening service in some cases, loss of control over that part of the business and wasted management time and expense in trying to rectify the problems. So, how do customers make sure they get it right and run an effective procurement process when resources are tight? The answer is smarter procurement. It is key to forward plan, to run a streamlined, tailored process which ensures advisors are involved at the right stages and documentation is specific to the deal, to keep the initiative with the suppliers and to ensure that the deal works for both the customer and the supplier. While it is true this may be easier said than done, here are some suggestions on how to move towards this Holy Grail. Deal specific documentation The goal: Tailored, coherent documentation which has the same themes running from the initial RFI right through to final contract. The reality: ‘The Blue Peter effect’ – the commercial teams and advisors Slaughter And May was founded on New Year’s Day 1889 by William Capel Slaughter and William May, “two young solicitors... who met while training together in the City.” www.outsourcemagazine.co.uk  http://www.outsourcemagazine.co.uk

Table of Contents for the Digital Edition of Outsource Issue 21

Outsource - Issue 21
In This Issue
Meet the Board
News and Comment
The Post-Election Landscape
Jim Mather
Sharing the Burden
Q&A: Debra Robinson
RPO Report
The Cloud Breaks
Tom Bangemann
Germany Focus
Outsourcing Derivatives Reconciliations
The Path to Perfection
Phone Home?
Sergei Levteev
Bangladesh
Richard Thompson
Adam Foster
SME Outsourcing
Good Relations
Culture Clash
Professor Arie Lewin
The Legal View
NOA Round-up
Words from the Web
Inside Source
The Last Word

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