developing outsourcing precedent
the challenge:
Advising Hiscox on the outsourcing of certain key services to
third parties. The objective was to have a precedent document
that; could be used across a range of services, was Financial
Services Authority (FSA) compliant, would protect our client and
offer varying options for different service areas.
our approach:
By discussing the client’s commercial concerns we created a
precedent that allowed; the benchmarking of services, the
facilitation of exit planning and the monitoring of service levels
across different providers, as well as bespoke areas such as the
protection of funds in the hands of third parties. We created
a ‘negotiation plan’ setting out the clauses that are essential for
regulatory compliance, the consequences of conceding other points
as well as a set of options in the event favourable terms could not
be negotiated.
the result:
Having a single contract that can be altered according to the
type of services allows the client to manage risk easily, knowing
that the terms of its agreements are broadly similar; whilst the
combination of both precedent and negotiation plan ensures
contractual issues and alternatives are understood for future
contracts.