Contract management

Outsourcing is an arrangement under which an organisation contracts with a service provider to perform services that the organisation currently performs in-house or which are performed by an existing third party supplier. The outsourcing provider will instead provide those services using their own personnel and, often, facilities. Outsourcing agreements are often long term and as a result require careful management throughout the term. This might include addressing poor supplier performance through a service credit regime, dealing with disputes and implementing contract variations through a formal change control mechanism.

The outsourcing topic is divided into four subtopics, each covering a specific phase of an outsourcing transaction as follows:

•
Preliminary issues—issues for consideration in the early stages of a transaction, from initial planning through to bidder selection. See: Preliminary issues in outsourcing—overview
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Outsourcing agreements—precedents and detailed guidance on the key issues to consider when drafting and negotiating an outsourcing agreement. See: Outsourcing agreements—overview
•
Contract management in outsourcing—issues arising after the date of signature including governance, change and disputes. See below
•
Outsourcing by type and sector—specific guidance on certain types of transaction including public sector, financial

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