Term Sheet Negotiation Commentary - Aspects of an IT Outsourcing Contract - Law Assignment Help

Assignment Task :

QUESTION 1 – TERM SHEET NEGOTIATION COMMENTARY 

Set out in the Clause section below is the wording from certain key clauses of the Pro-Customer Long Form Outsourcing  Agreement. Students will appreciate that in reality the entire contract would be set out in the term sheet. This paper  concentrates on the key issues of Service, Quality, IPR, Liability and Termination (and only parts of those sections).  Please set out in the Supplier Response column short summaries of arguments a Supplier would deploy in responding to an RFP that contained these clauses to resist taking on this level of commitment. Then please set out the counter arguments you would deploy if you were acting for a customer. The arguments can include both legal arguments and commercial points (it would be fine for example to argue that a particular onerous provision is bad because it will drive negative behaviour by the parties). Your responses to each section should generally be only one paragraph though some may justify longer responses. Extra credit will be awarded for setting out fall back positions a supplier or customer could accept. Students will recall from Task 5 that this is classic way of managing a procurement process. You should treat the process of completing the sections below as if you were briefing a senior colleague or a client on the positions as well as drafting the actual push backs you are putting to the customer (in the supplier response column) or back to the supplier (in the customer counter-arguments column). Your response should argue why you are rejecting positions. Simply stating “Reject” or “Not Acceptable” will not suffice. 

Question 2. One of the main drivers for outsourcing is to control costs. Describe the approaches to pricing a customer can adopt to give itself clarity and control over what it pays and further, consider how it might future-proof the contract to ensure it continues to get good pricing. 

 Question 3. Any long term relationship has its ups and downs. Consider those aspects of an IT outsourcing contract which are designed to prevent disputes arising or to resolve disputes. 

Question 4. All outsourcing contracts end. Explain how to manage the process of contract renewal and exit management in the context of the outsourcing life-cycle and the risks that good practice in this regard is intended to mitigate.

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