Tech & Sourcing @ Morgan Lewis

In an earlier two-part series, we explored key factors for companies and influencers to consider when drafting and negotiating influencer agreements to advertise and market products and services on social media.

Global Capability Centers (GCCs) enable global enterprises to provide information technology and business process services from a central delivery location.

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 part of our Spotlight series, we welcome Marie Davy, who recently joined Morgan Lewis as a partner in our Paris office, to discuss key issues to consider when negotiating global distribution agreements.

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.

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.

In today’s rapidly evolving marketplace, innovation is not just a competitive edge but rather an expectation. Customers increasingly rely on their vendors to provide cutting-edge technology and stay ahead of industry trends. As such, a critical question arises: Should customers require service providers to agree to a contractual obligation to continually evolve and innovate their service offerings?

In many standard service agreements, providers will typically be required to deliver their services in accordance with generally accepted industry standards and practices and with professionalism and a level of skill appropriate to the agreement’s demands. While this standard often serves as a benchmark, it is rarely spelled out in detail. To reduce ambiguity, some agreements may go a step further, introducing a defined term to capture the expected service quality.

UK financial regulators recently published their supervisory expectations for critical third party service providers (CTPs) to the financial sector under the United Kingdom’s new regime extending regulatory oversight to CTPs. The final rules align with key themes of other regulatory regimes seeking to reinforce operational resilience (e.g., the EU Digital Operational Resilience Act (DORA)) around risk management, supply chain management, and incident management, among other areas.

The rapid adoption of generative AI (gen AI) is driving increased cloud consumption.