Practical Steps to Expeditiously Closing a Mid-Size Offshore Outsourcing Transaction

• Posted by Geoffrey G. Gussis on March 30th, 2007


• Filed in Corporate/M&A, Guides, Tips and Practice Pointers, IT/Software/Internet

Head over to PLI to download a free article by William A. Tanenbaum (Kaye Scholer LLP) on getting offshoring deals closed. PLI’s take is that Tanenbaum offers “a streamlined, ten-step process to bringing agreements ‘to execution in a reasonably prompt time period.’” Tanenbaum’s program (head over to PLI at the link below to get the full article) contains the following ten steps:

1. Customer assessment of its business and outsourcing goals;
2. Generate vendor interest;
3. Issue a Master Services Agreement and Statements of Work;
4. Customer allowed providers to “bid” on different “lots”;
5. Customer communicates that winning providers will be eligible for future phases;
6. Use an online, real-time bidding process;
7. Cross-Functional customer team evaluated finalists and provided checklists in advance;
8. Due diligence by providers;
9. Contract negotiations; and
10. Selection of two providers and completion of contract process.

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