Drafting or Reviewing Outsourcing Agreements - Checklist
Checklist
This Checklist sets out some key issues when drafting or reviewing an outsourcing contract. It considers some key legal, regulatory and practical issues around outsourcing arrangements but does not deal with particular sectors with special regulatory requirements such as health or financial services.
The third column can be used to record observations or comments as the Checklist is worked through.
Checklist | Further information | Notes (if any) |
|---|---|---|
Initial considerations | ||
☐ What is the customer's primary motive for outsourcing? | It is useful to know the primary motive, eg is it to decrease cost, improve the service or is it a service the customer does not have expertise to provide in-house? It may also be useful to consider the scope of outsourcing, whether the customer would like a service improvement mechanism and whether the value for money of the services will be benchmarked (see below). | |
☐ Check whether there are any arrangements that would prevent your organisation or client from entering into the contract. | For example, you would need to be aware of any restrictive covenants or exclusivity arrangements. | |