IT Outsourcing Contracts

Jimmy Desai is a partner at law firm Beachcroft LLP, in the City of London, and has been advising upon, formulating and implementing SLA contracts and strategies, benefits and cost savings for businesses, since the mid 1990s. Throughout his career he has advised major international blue-chip companies, governments, industry bodies, IT customers and suppliers on their service level agreements. Jimmy writes extensively for a wide range of IT publications, and lectures at international conferences. He is a member of TIPLO, ITMA, SCL, EuroITcounsel, Intellect, and ITechLaw. In the International Who's Who of Internet and E-Commerce Lawyers 2010, Jimmy is listed as one of the top 40 Internet and e-commerce lawyers in the UK.

How can you be sure that IT outsourcing will improve your bottom line?
Outsourcing the IT function looks attractive. It can offer you greater flexibility and cost savings, and enable you to focus on your core business. At the same time, outsourcing IT has its problems. It can involve extra risks and hidden costs. Your company's relationship with the IT supplier will not just run itself. You will need to manage the relationship to obtain the services your business requires.

Whether outsourcing your IT is the right decision for you depends on the needs of your business. This is why you should be clear in your own mind what you expect from your IT. That way, if you do decide on outsourcing, you will then be able to find the best supplier.

Finding the best supplier of IT services is not just a matter of the cheapest deal. You want to be sure you are using a supplier with real technological expertise who understands the specific requirements of your industry.

Because your business relies on IT, negotiating the contract with the supplier is of vital importance. You need to be aware of matters such as liability, data protection and intellectual property. If you want outsourcing IT to work for you, you need to negotiate a contract that takes these issues into account.

Benefits to business include:
¿Make the right decision
Use this book to help you decide whether outsourcing IT is the right solution to your business needs.
¿Secure the right service package
You need to make sure you will obtain a service package that will fit your requirements. Follow the advice in this book, and you can avoid becoming locked into a contract for services you do not want or need.
¿Avoid spiralling costs
When objectives are unclear and communication is poor, your relationship with your supplier can turn sour. Find out how to avoid the crossed wires and disputes that can cause costs to spiral.
¿Negotiate the right contract
Cutting the best deal is about more than driving a hard bargain. The contract with the supplier sets the terms of the relationship for years to come. This book tells you the steps you need to take to make sure the contract is properly drafted.

Buy this book if you want IT outsourcing that will work for your business!
About the author:

Jimmy Desai is a partner in a City of London law firm. He has more than a decade's experience of advising on IT outsourcing contracts, and he has helped businesses to implement outsourcing strategies and to make cost savings. He has also offered advice to both governments and international companies on their IT outsourcing transactions. In addition to his law degree, Jimmy Desai holds a Master's Degree in Electronic Engineering and has postgraduate qualifications in Intellectual Property Law and Practice. He has given lectures at the University of London and the University of Stirling, and he writes for several IT publications.

Introduction 8 Chapter 1: Why do Organisations Consider IT Outsourcing? Choosing to outsource your IT Advantages of IT outsourcing Disadvantages of IT outsourcing Summary Chapter 2: How to Choose an IT Outsourcing Supplier A typical selection process Potential dispute areas Mistakes to avoid when selecting your IT supplier Public sector process Getting pricing right Negotiating price and payment terms Making the right choice of IT supplier - other selection criteria Summary Chapter 3: Agreeing Points of Principle Why agreeing key terms matters Not all IT suppliers like key terms How can you remain in control? Summary Chapter 4: Key Clauses: Deal breakers, Options and Workarounds Deal breaker one: Price Deal breaker two: Term and termination Deal breaker three: Exclusions and limitations of liability Deal breaker four: Intellectual property Summary Chapter 5: Agreeing the IT Outsourcing Contract Putting an IT outsourcing contract in place The importance of good communications Costs Other legal issues Offshoring abroad Summary Chapter 6: Managing the Relationship: Typical Problems and Solutions Making changes to your IT outsourcing contract Service standards and service level agreements Summary Chapter 7: Ending the IT Outsourcing Relationship Termination A good ending Summary Chapter 8: Conclusions and Key Learning Points ITG Resources