Tech & Sourcing @ Morgan Lewis

2025 has seen a notable push by companies to establish dedicated capability centers—or global capability centers (GCCs)—in countries with lower-cost resources and access to a strong talent pool. According to S&S Insider, the global GCC market was estimated at about $128.5 billion in 2023 and is expected to increase to more than $300 billion by 2032, growing at a rate of 13.51% CAGR. NASSCOM reports that India leads the GCC market, currently hosting over 1,700 GCCs, employing more than 1.9 million people, and having an 11% CAGR.

As noted in our recent blog, business process outsourcing (BPO) providers are promising big savings and improved outputs tied to the design and implementation of digital solutions that will monitor, quality check, facilitate, and sometimes perform the applicable business processes.

Gone are the days when a company could outsource the “people” that perform a business process without considering, and likely including in the outsourcing arrangement, the digital enablement of the underlying workflows and activities.

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.

Please join us in our Philadelphia office on Wednesday, April 23, for the 2025 Tech & Sourcing Philadelphia Summit. We are broadening the agenda this year to provide more time for exploring issues that are front of mind for technology and sourcing lawyers, starting with an AI and ethics session, followed by three hours of interactive presentations and workshops by market leaders in the technology, sourcing, and privacy fields.

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.

Please join us on Wednesday, March 19, 2025, from 12:00 pm to 1:00 pm ET, as Morgan Lewis partners Barbara Melby and Mike Pierides discuss the systems, processes, and workflows necessary to data center operations as well as the issues that may arise for data center operators when contracting with third parties.

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.