Information Services Group (ISG) reported that the global outsourcing industry is slowly recovering from the industry’s dip in performance during the second quarter of 2020 due to the coronavirus (COVID-19). Data measuring commercial outsourcing contracts with annual contract values (ACV) of $5 million or more show that third-quarter ACV for the global market rose 3% to $14.6 billion.
NEWS FOR LAWYERS AND SOURCING PROFESSIONALS
We are kicking off our Tech & Sourcing webinar series on October 13 with our first event, Service Engagements and Business Continuity: A Fresh Look. Morgan Lewis partners Barbara Melby and Michael Pillion will address the evolving approaches in services engagements, including how to address and allocate responsibility for unanticipated business interruptions and business continuity requirements. Barbara and Michael will discuss the following topics:
- Industry views on business continuity and the current challenges
- Current thinking on contract terms and considerations relating to business continuity
- A fresh look at force majeure and excused event clauses
We hope you'll join us on Tuesday, October 13, 2020, from 12:00 to 1:00 pm ET.
In April, we shared a LawFlash Outsourcing and Managed Services Agreements During COVID-19: Our Perspective. With the continued and unprecedented impact of the coronavirus (COVID-19) pandemic on business operations, we thought it would be timely to provide a brief update on five top-of-mind issues that we are addressing with outsourcing and managed services clients.
- Many outsourcing and managed services agreements include strict requirements on the location of personnel, including the location of certain personnel onsite at a customer site and/or the location of offshore personnel at secure delivery centers with no permitted remote working. These physical location restrictions often are coupled with requirements with respect to the type of technology that can be used when connecting to or accessing the customer’s systems or interacting with end users (such as hardened desktops only, no personal devices), security requirements and detailed connectivity and bandwidth requirements (particularly if there are end user facing activities such as call centers).
Please join us for an in-depth discussion on how to successfully renegotiate your existing services contracts with technology, outsourcing, and commercial transactions partner Vito Petretti. Topics will include:
- A general look at the renegotiation process
- Business issues and drivers involved in renegotiation
- How to conduct a renegotiation
- Contract terms that may impact renegotiation
We hope you’ll join us on Wednesday, April 8, 2020, from 12:00–1:00 pm ET.
Please join us in our Philadelphia office for our annual Technology, Outsourcing & Commercial Contracts Networking Roundtable. The roundtable will feature an in-depth discussion of hot topics relating to the increased connectivity of our businesses, including privacy concerns, data rights, cloud solutions, and contracting for the use of connected devices. Stay connected with us at the networking reception following the discussions.
We hope you’ll join us in Philadelphia on Thursday, April 16, 2020, from 3:30–5:30 pm ET.
In a long-term outsourcing, software as a service (SaaS), or other services agreement, the customer will typically push for a termination right relating to the service provider’s breach, and perhaps for an insolvency event or change in control of the service provider. However, the customer should also consider including the right to terminate for its convenience (without cause), which could cover any of the following situations:
- The customer is not satisfied with the service provider’s performance under the contract even though the provider is meeting its service level and other performance requirements under the contract.
- Many alleged breaches by the service provider are initially “black and white” in the view of the customer, but they turn “gray” when the service provider pushes back and alleges nonperformance, nonresponsiveness, lack of cooperation, and the like on the part of the customer. Adding the customer’s right to termination for convenience can avoid the potential dispute over whether the customer has the right to terminate on other grounds.
Morgan Lewis has recently issued several LawFlashes on the 2019 Novel Coronavirus (COVID-19) outbreak, providing a number of resources for businesses across the globe dealing with various compliance challenges and unanswered questions. In this rapidly changing situation, for example, employers must carefully balance concerns related to employee and public safety with protecting employees from unnecessary medical inquiries, harassment, and discrimination.
To help guide companies through this multifaceted public health crisis, Morgan Lewis has launched Responding to the 2019 Novel Coronavirus to keep on top of developments as they unfold.
Are you about to sign a service agreement with a third-party service provider under which it will access and use technology of your company? Have you checked your applicable third-party contracts to see if you need any consents? The contracts under which your company uses technology every day, from the mundane to the critical, may contain hidden restrictions on the third party’s access and use for your benefit under the services contract.
There is an endless number of arrangements a customer could have with its third-party service providers, but this Contract Corner will discuss the case where the customer authorizes a service provider to access and use licensed software either while remaining at the customer site, or by moving it to the service provider’s site. More specifically, it explores just some of the issues and language in the customer’s license agreements with those third-party software providers to be checked during pre-signing due diligence.
Please join us for our first webinar of the year where Morgan Lewis partner Barbara Melby will discuss the top trends that will impact the outsourcing market in 2020. Topics will include:
- Forecasts of where the outsourcing market is going
- Outsourcing as a way to disrupt business operations
- The impact of cloud, automation, and AI on outsourcing transactions
- A look at the “Partner Ecosystem”
- Focus on customer experience and outcomes
The webinar will take place on Wednesday, January 15, 2020, from 12:00 to 1:00 pm (Eastern Time). Register for the webinar.
You signed a long-term deal. It would be embarrassing if, in a few years after signing, the pricing is significantly higher or your service levels are significantly lower than market. Benchmarking provisions are intended to provide a mechanism for ensuring that your pricing and/or service levels are within market (taking into consideration the unique factors applicable to your deal). Set out below are some of the key components of a meaningful benchmarking provision.