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 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.

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.

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.

Mike Pierides and James Mulligan co-authored an article in the Journal of Securities Operations & Custody which explores key themes of outsourcing and third-party risk management regimes that apply to financial entities and their service providers. The article serves as a compendium of key differences between regulatory expectations on resiliency and outsourcing, highlights key best practices and challenges to implementing these expectations, and, finally, considers the impact of artificial intelligence solutions on such regulatory expectations.