Five Tips for Avoiding Pitfalls in Multi-Sourcing Arrangements
Advice for avoiding risks and disputes in multiple vendor multi-sourcing outsourcing agreements for services like information technology.
November 14, 2014
Reprinted with permissions form Bloomberg BNA, Corporate Law & Accountability Report
Today, more outsourcing contracts are being inked than ever before. In second quarter 2014 alone, companies around the globe signed a record 340 commercial outsourcing contracts with an annual value of $5 million or more, totaling $6.4 billion altogether. This represents a 72 percent increase over second quarter 2013 worldwide and a 118 percent increase for North and South America. Information technology outsourcing (‘‘ITO’’) contracts, in particular, increased globally by a margin of 100 percent over the same period. In the words of one analyst: ‘‘We are seeing broad-based strength across the entire global outsourcing market, with growth almost everywhere we look.’’
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