Unit description
The unit starts with a general overview of outsourcing including explaining the terminology relevant to outsourcing. The Outsourcing Lifecycle is then considered.
The unit then focuses on the framework for a typical outsourcing contract, including looking at issues such as tern and termination, asset transfer and transition.
The unit then looks at the topic of service levels (this was briefly covered in Unit 2). The topic of service credits is then discussed, including their characterisation in a commercial context, method of calculation, payment /recovery of service credits and some practical steps to consider.
The unit then provides the Learner with a basic introduction to the topic of service charges and the other types of charges one is likely to come across in an outsourcing agreement. The unit then goes on to discuss benchmarking, including how it should be dealt with in the outsourcing contract, action from findings, initiating, frequency, scope and some practical steps to consider.
The unit concludes by discussing exit management, including the purpose and contents of an Exit Management Schedule, transfer of physical assets and software, co-operation and provision of information, employees and transfer of third party agreements.
It should be noted that issues discussed in Units 1 to 3 (such as liability, indemnities, force majeure, assignment/novation and termination) are also relevant for outsourcing contracts. However, the specific issues we cover in this Unit are particularly relevant for outsourcing contracts.
Summary of learning outcomes
To achieve this unit a learner must:
- Understand the contracting structures for outsourcing projects
- Understand the issues relevant to an asset transfer and the transition process
- Understand some of the key concepts relevant to outsourcing contracts