Clause for Thought over That Deal; Suppliers and Buyers Face Minefield

By Duckers, John | The Birmingham Post (England), February 26, 1999 | Go to article overview

Clause for Thought over That Deal; Suppliers and Buyers Face Minefield


Duckers, John, The Birmingham Post (England)


An outsourcing time-bomb is ticking away, according to Mr Michael Arnold, head of IT law at Eversheds.

He warns that suppliers and buyers who do not form proper commercial agreements and consider the get-out clauses right at the beginning could find deals exploding in their faces."

Mr Arnold says the massive outsourcing deal between National Savings and Siemens Business Services - worth pounds 1 billion over 15 years - highlights the scale of what is now being considered.

He said: "National Savings is handing over mission critical systems to an outside organisation and essentially looking to Siemens to transform the business."

And he points to the acquisition of Axis Resources Holding by Hays for pounds 40.3 million eight months after Axis was spun off from Tomkins in a pounds 13 million management buyout as also indicating the financial buoyancy of the sector.

Mr Arnold said: "Organisations are handing over critical IT systems to a supplier - this may include the employment of the relevant IT staff as well as the ownership and management of the systems.

"In essence, companies are often relinquishing control over a core business function and this could spell trouble if both parties do not consider all the options at the start of the contract.

"The service provider must make sure they do not promise too much or treat the customer as a cash cow and the client must not view the deal as a way to hand over problems to someone else. Companies must make sure they retain enough control to carry out their function adequately and protect their organisation.

"The two organisations must form a comprehensive commercial agreement."

He suggests a contingency plan for late delivery with assignment of risk prepared; ensuring the system meets requirements and legal liability is clear if it does not; a base level of service and support must be guaranteed; the outsourcer needs to be legally able to run and manage software that was licensed to the company; and care and attention must be put into clarifying exit strategies, making sure simple things like the return of data is considered. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Clause for Thought over That Deal; Suppliers and Buyers Face Minefield
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.