Business Contracts

Outsourcing

This is the transfer of a business function, process or service by a company to a third party provider. Generally speaking, all the responsibilities that come with that function, process or service are transferred to the third party provider which may include the employees who were responsible for the activity being outsourced prior to the transfer. Often there is a transfer of assets, software, equipment, licences and existing contracts. In some cases there may be a requirement for one of the parties to build new systems or provide new equipment.

As with other types of business transfers, there must be a soundly negotiated agreement in place in order to protect both parties as far as possible. The  Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) may be relevant if employees are being transferred to the third party provider.

Our Commercial Team together with our employment specialists are able to advise on every aspect of your outsourcing agreement to ensure that the decision to outsource part of your business goes as smoothly as possible.