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Legal Outsourcing Contract and Common Mistakes

TrustmanLegal Outsourcing IndiaLegal Outsourcing Contract and Common Mistakes

Jun

17

Legal Outsourcing Contract and Common Mistakes

These are the following common mistakes made by the companies while entering into outsourcing arrangements and generally result into failures of the outsourcing arrangements.
  • Putting service providers in a box with every change then being out of scope
  • Having to make trade-offs between innovation or improved service,  and reducing the buyer’s cost or improving the provider’s profits
  • Weighing the angles for each party’s self-interests• Having a contract that ends up being used as a legal weapon or a protective device
  • Compromising in pricing negotiation such that both parties settle for something less than they hoped for
  • Getting stuck with a statement of work that’s too tightly defined and not flexible for unanticipated challenges
  • Playing the shell game as the provider shifts costs around in an effort to maintain its target margins
  • Ending up with the service provider that is unwilling to take on risk by making large investments to generate larger returns for both parties
  • Taking the financially short-sighted approach of shifting risk to the other party and thus adding to the hidden costs