Outsourcing

We have worked and lead what were at the time some of the biggest and complex international outsourcing programmes in the world. We bring the expertise learned to your organisation including how to project manage the legal contract, which is, in our view, the commercial deal.

Unfortunately, not all outsourcings are a success and need to be managed constantly. This is why the contract is just so important throughout the lifetime of the deal. It enables you to understand the value you are getting on both the buy and the sell side. 

We have worked in both the private and the public sector, and understand the value propositions that it can create and we can advise on legacy deals coming up for renewal or applying a different approach to existing deals.

We worked in multi-disciplinary teams including Finance, Regulatory, HR, Procurement and Audit teams. As subject matter experts with responsibility for the legal contract and its negotiation, we become deeply embedded in the team as team players must, thereby adding real value to any outcome. We would be delighted to do this for your organisation.

We have dealt with many high-profile outsourcing IT and Communications deals/projects in the Banking, Automobile and Education (Public) sectors. We have dealt with deals of all sizes and shapes as no two are the same. The following gives you a taste of what we can do.

ABN Amro Bank 

ABN Amro Fast Track Global Telecommunications Outsourcing Fast Track Programme.

The first programme of its kind known as Multi-sourcing where rather than one supplier was selected for the whole infrastructure, best of breed suppliers were selected for their expertise. For Example:

  • KPN was appointed for Global Mobility Services
  • Avaya for telecommunications hardware (switches and handsets)
  • Verizon Business for Network Services.

All 3 after a thorough supplier selection programme out of New Jersey USA for tax purposes. Hired and worked closely with Linklaters Solicitors.

The base cost of all the services across the world was 3 billion euro over 5 years. The cost savings achieved amounted to 2 billion euro over 5 years.

Values: Mobility 180m euro, Hardware 280m euro, Network 550 euro.

UK Representative on Projects Harvest and Symphony, Global IT systems outsourcing to Infosys and Global IT Development Preferred Supplier list to TaTa Consulting, and 4 other global IT suppliers from across the world. Project was outsourced to Clifford Chance Solicitors.

Legal oversight and management of the ABN Amro EDS Global Outsourcing Contract.

The largest outsourcing contract in the world at the time covering IT and communications over all territories where the global investment conducted business including the USA, EU, South America, India, Australia, New Zealand, the Far East, approximately 60 countries where the Bank had a representative office.

Dealt with many contentious issues such as: Pricing amendments, service quality, step-in rights, HR and people issues, intellectual property and access etc.

Volkswagen 

VW Warehouse 2nd generation outsourcing from Tebbit & Britten to Unipart. 

  • Drafting and negotiating complete outsourcing contract with new supplier.
  • Termination of contract of existing supplier and application of exit provisions and conducting negotiations on existing liabilities and indemnities under release provisions
  • Staff consultations under TUPE on the transfer of over 500 full and part time staff with cooperation of both parties.
  • Change of management.
  • IT systems transfer – negotiating and rejecting implementation of supplier system IT system.

VW Warehouse 3rd generation outsourcing from Unipart to TNT. Additional element was complete build and relocation from Milton Keynes to Atherstone of a bespoke Warehouse with rail and road access to cover the right-hand drive vehicle market across the world.

Issues dealt with:

  • Termination of existing supplier and dealing with many contentious issues.
  • Settling disputes with incumbent on early termination and release
  • Managing Contractual indemnities and liabilities disputes upon termination and negotiating an acceptable settlement.
  • IT systems, settling dispute over system replacement proposal.
  • TUPE transfer of all employees and indemnities for redundancies for new supplier.
Abbey National (Now Santander)
Project Lion (2003):
1. Legal Lead and member of vendor selection team on Project Lion, complete replacement of MAN, LAN and branch telecommunications networks and cabling to cover VOIP Cisco backbone. Deal vale £500m over 5-year term that brought in cost savings of some £250 over the term. Awarded to BT after thorough supplier selection process starting with 10+ suppliers and their proposals after RFP process.
  1. Reviewing all proposals prior to Issuing requests for further information.
  2. Whittling down to 3 suppliers, C&W, BT (incumbent) and Computacenter.
  3. Negotiating a separate MOU with all headline terms agreed with commercial and legal team to signature.
  4. Further selection to 2 suppliers.
  5. Negotiating of contract with both in streams.
  6. Contract award. Termination of award and final award to BT.

2. Creation of the Abbey National ITC Development Centre in Bangalore, India. A large-scale offshoring of IT software and systems development work.

3. IT systems management outsourcing to ITC Infotech in India.