Some Issues in Contracting

Whatever the current trend in information technology and business processing outsourcing, the key issue confronting lawyers representing customers remains the same -- how to allocate the costs and benefits that will result from changes to the outsourcing relationship over time.

Few outsourcing customers realize the potentially sweeping impact of change on an outsourcing relationship. In reality, many factors affect the scope of the services the customer seeks and the volume of the services the customer consumes, including:

• Changes in the customer's product lines or market focus

• Changes in demand for the customer's product or service

• Changes in the technology or business processes the customer uses

• Changes to the regulatory environment in which the customer operates

• Changes to the customer's operations resulting from one-time events such as the purchase or sale by the customer of a line of business

• Changes to the technology used by the provider

• Changes to the provider's service delivery model

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