Outsourcing might also be related to a much defined assignment, as e.g. administration of a gross income scheme where the employer accepts certain tasks that the employer is not prepared for, e.g. delivery of services under the gross income scheme or support in case of complaints or errors. For detailed information in this area, please read our special issue of November 2009.
Purpose of outsourcing
Usually, the purpose of outsourcing is to achieve a flexibility and with this, a chance to adjust services to fit the undertaking at every time. The reason for this might be a wish to cut costs, improve the quality of the services delivered, improve and optimise the undertaking, or a combination of this. No matter the undertaking's reason for outsourcing, before implementation of an outsourcing process, the undertaking has to make clear what they expect to achieve from an outsourcing so that the parties' agreement reflect this, comprising how fulfilment of this is measured – e.g. in the form of service levels, benchmarks, and other management and regulation mechanisms. Ultimately, the result of an outsourcing depends on how it is prepared.
It is also important to make clear that there, regardless of outsourcing, continuously will be some tasks related to the outsourced areas that remain with the outsourcing part, including not least the contract management and the user interface tasks. The contract management task should be handled professionally and becomes essential if a multi sourcing strategy is used.
Outsourcing might be relevant at the following types of agreements:
- Takeover agreement
- Business Process Outsourcing (BPO) agreement
- Facility Management agreement, e.g. regarding catering working and cleaning
- Application Service Provision (ASP) agreement
- IT outsourcing agreement
Technical and commercial insight
For a number of deliveries, transfer of software, data, and establishment of telecommunication connections are often presumed and with it advice regarding IT and telecommunication law and personal data law. In this connection it is important to be aware that some licence agreements exclude the possibility of outsourcing and that permission for this purpose should be negotiated in good time before outsourcing takes place. Concurrently, Plesner's outsourcing experts are specialists in IT and telecommunication law and they are experienced in handling the potential IT problems which occur in a situation of outsourcing.
Our consultancy services and advice include employment and labour law related to any transferred employees and depending on the specific requirements, we can provide consultancy services within Plesner's other practice areas.