Tech & Sourcing @ Morgan Lewis

Please join us on Wednesday, April 10, 2024 from 12:00–1:00 pm ET, as partners Kristin Hadgis and Don Shelkey and of counsel Eric Pennesi discuss the latest trends in commercial contracts negotiations, including negotiating artificial intelligence (AI) provisions and recent trends in privacy and security.

New ICT incident reporting requirements under Circular 24/847 (Circular) of the Commission de Surveillance du Secteur Financier (CSSF), Luxembourg’s financial regulator, will come into effect on April 1. This introduces a new ICT-related incident reporting framework and underscores the critical importance of proactive measures in safeguarding financial institutions against ICT and cyber threats.

The European Central Bank (ECB) has published data showing that banks are increasingly using third-party providers to support their critical functions. However, more than 10% of outsourcing contracts covering critical functions are not compliant with the relevant regulations. During a key year for EU financial institutions and their critical service providers—with implementation projects for the Digital Operational Resilience Act (DORA) well underway—the ECB signals that outsourcing and resiliency, particularly risks associated with cloud outsourcing and concentration risks, will be a top priority on its supervisory agenda.

As we reach the end of 2023, we have once again compiled all of the links to our Contract Corner blog posts, a regular feature of Tech & Sourcing @ Morgan Lewis. In these posts, members of our global technology, outsourcing, and commercial transactions practice highlight particular contract provisions, review the issues, and propose negotiating and drafting tips.

Deloitte has issued a biennial report that identifies trends that are impacting customer/client contact center operations. The respondents surveyed by Deloitte represented both internal- and external-facing contact centers. This blog post summarizes some key trends outlined in the report.

In a recent LawFlash, George Cyriac, Wai Ming Yap, and Dr. Axel Spies reviewed key features of India’s new privacy law—the Digital Personal Data Protection Act, 2023 (DPDP Act). They also discussed what to expect regarding and how to prepare for these new requirements, including that India’s central government may enact separate rules to give effect to certain provisions of the DPDP Act.

While the regulatory landscape around artificial intelligence (AI) continues to evolve, navigating contractual arrangements and apportioning risk for the use of AI may seem like stepping into the unknown. In this blog post, we consider how a few familiar concepts within commercial contracts may be applied to the provision and use of AI tools as part of services.

Please join us on May 10, 2023 at 12:00 pm ET to learn about key points to consider when terminating cloud service arrangements. Morgan Lewis partner Chris Archer, of counsel Emily Lowe, and associate Jonathan Traub will discuss the importance of drafting termination clauses and addressing the transition to new vendors with a view toward efficiently protecting an organization’s business interests.

A recently released Business Process Outsourcing (BPO) Market report indicates significant continued growth in the BPO sector over the next decade. The results of the study on which the report is based show an expected growth from the 2022 market of $245.9 billion to $544.8 billion in 2032, an 8.5% compound annual growth rate (CAGR).

The UK communications regulator and concurrent competition authority, Ofcom, announced on April 5 its proposal to refer the UK cloud services market to the Competition and Markets Authority (CMA) for further investigation. This coincided with publication of the interim report of Ofcom’s market study of the largest providers of cloud services (referred to by the authority as “hyperscalers”) in the United Kingdom’s £15 billion ($18.7 billion) cloud services market.