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.

As the summer 2025 concert season continues to ramp up, we want to take the opportunity to explain why your favorite band or artist might only be performing once in your region this summer: a radius clause.

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.

The leveraging of outsourcing engagements to implement and support digital transformation solutions is emerging as the foundation for the next generation of outsourcing. Digital transformation is a critical part of many companies’ strategic roadmap, seen as creating key opportunities for cost savings, efficiency, productivity and quality improvements, enhanced customer experience, and competitive advantages, including through state-of-the-art automation and data analytics. Many companies do not have the internal resources or skill sets to implement digital transformation at the required pace. This is leading to companies “leaning in” on their outsourcing providers to identify, design, and enable digital transformation solutions in a secure and compliant manner.

Digital transformation continues to be a buzzword for 2025, with companies considering or implementing new user-facing and back-office artificial intelligence (AI) solutions and other digital tools to enhance end-user experience (UX), business operations, IT infrastructure and resilience, and data flow and connectivity between devices and environments. These digital transformation projects often require project-based resources with specific skill sets that may not be readily available within a company to meet the desired implementation timelines. As a result, many companies engage third-party providers to design, build, test, and/or implement their digital transformation strategies.

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.

Please join us for Data Center Bytes, our recently launched webinar series during which Morgan Lewis lawyers will discuss the key legal considerations, industry trends, and regulatory developments shaping data center growth and operations.

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.