Tech & Sourcing @ Morgan Lewis

The business process outsourcing (BPO) market is growing at an unprecedented rate as technological advancements transform traditional BPO models to keep up with evolving business needs. As BPO service providers implement and leverage technologies, such as cloud computing, robotics, data analytics, automation, and traditional and generative AI, to streamline processes and improve productivity and quality, digital transformation is becoming a common component—and selling point—for many BPO engagements.

Data issues—collection, usage, optimization, commercialization, and protection—are at the forefront of more and more transactions in the sports industry.

Interest in offshore business centers, commonly known as global capability centers (GCCs), continues to rise as US companies across industries look to establish overseas offices and hire skilled workers to support critical business functions and technology services.

Each outsourcing transaction has its own unique characteristics and business drivers and, therefore, will include its own deal-specific terms. A key initial consideration to think about when beginning an outsourcing initiative is how the personnel of both parties will be managed. This includes how the transaction will impact the customer’s existing employees and contractors, as well as oversight and management of the service provider’s personnel. These issues will likely have operational and financial impact, and will require input and coordination with internal human resources (HR) teams.

Partners Ksenia Andreeva and Kristin Hadgis authored an Insight titled The Evolving Framework of Data Governance: A Global Perspective. The article explores and summarizes hot topics in data governance, data privacy laws, and the evolving global landscape, including in the United Kingdom, European Union, United States, and Middle East. As the focus on transparency and cybersecurity increases, and as markets become more globalized, keeping up to date on privacy regulations and rules can be a demanding undertaking.

Whether form or template agreements are for a company’s own services or are used for the procurement of goods and services, leveraging forms can be a useful tool to maintain consistent terms and conditions. With the advancement and growth within the artificial intelligence (AI) market, including new and enhanced products and services that incorporate AI, now is a good time to revisit and refresh template agreements.

Artificial intelligence (AI) is reshaping modern society, enabling the automation and modification of routine human activities and, consequently, enhancing efficiency and productivity. Like any technological development, AI presents both benefits and risks. Concerns include potential biases, privacy intrusions, and ethical dilemmas.

While artificial intelligence has not quite yet achieved singularity, the last fortnight brought about a substantial update to the AI regulatory landscape. As of February 2, Chapters I and II of the EU AI Act have entered into force. This includes Article 5, which prohibits certain AI systems whose use may intrude upon an individual’s privacy. This includes certain AI systems relating to emotion recognition in the workplace, subliminal manipulation, and predictive policing. Separately, EU AI Act obligations relating to AI literacy have also gone into effect.

In our latest blog post, we shared a few considerations for compliance in the context of complex outsourcing contracts. Continuing on this theme, we take a look into the matter of data protection compliance.

In the current, highly competitive, business landscape, businesses face the challenge of optimizing efficiency, enhancing productivity, and reducing costs, all while maintaining the quality of their services. One of the strategies for achieving these goals is outsourcing noncore business functions to qualified and experienced vendors, which is where the drafting and negotiation of outsourcing agreements comes into play.