Morgan Lewis

Information Technology Outsourcing

Related Publications

02/04/09 Advanced Outsourcing and Transformational IT Contracting, presented at the Westchester/Southern Connecticut Chapter of the ACC, Darien, CT
09/04/07 Avoiding 'Gotchas' in Outsourcing Contracts, a Q&A with IT Business Edge
As part of their "Outsourcing Contracts Special Report," IT Business Edge completed a Q&A with Edward Hansen , a partner in the New York office. Hansen's practice focuses on IT transactions. (Reproduced with permission.)
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Related News

05/18/09 Speed Sourcing: The New Outsourcing Trend, CIO
Ed Hansen discusses the benefits and potential pitfalls of speed sourcing.
04/29/09 The Good, the Bad and the Ugly: 10 Tips for Outsourcing Incentives and Penalties that Work, CIO
Ed Hansen discusses the provisions to avoid when entering into an IT services agreement.
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Information Technology is the backbone of modern business, and the corporate world is increasingly choosing to entrust this critical function to outsourcing providers. Although companies outsource IT for many different reasons, cost savings, improved service quality and processes, and a desire to focus on core competencies rank among the most common. Ironically, the inability to realize these objectives is the most common reason for failure.

Based on our experience and the success of our clients, we know that an appropriate contract is critical to a successful outsourcing—but not for the obvious reasons.

Requirements for an outsourcing contract to work:

For an outsourcing contract to work, it must reflect a relationship that will work. At its core, there are three requirements that must be met to have a successful relationship with an outsourcing supplier:

  • An outsourcing can only be successful if it is built on a solid relationship with known expectations.
  • The requirements for the outsourcing must be based on the requirements of the business without outsourcing in mind—ask the question: "What would I ask my own people to do?"
  • The executives delivering IT services to the business must never be hamstrung by the outsourcing.

We will help you approach your outsourcing from the very beginning with these requirements in mind. We have developed certain steps that we use during the sourcing process that are specifically designed to achieve these goals. We will help you get these goals into the relationship, and ultimately the contract, in a way that aligns the supplier's interests with yours.