Outsourcing gives companies the freedom to concentrate on core competencies and brings an infusion of ideas and business methodologies to the table by facilitating the reallocation of valuable resources. Other benefits of outsourcing might include increased efficiencies, reduced operating costs and risk sharing with partnering companies.
To assist in the implementation of a sourcing strategy, a sourcing lawyer draws on legal expertise from mergers and acquisitions, contracting, finance, human resources, information technology, licencing, intellectual property, taxation, competition, privacy, government procurement and other disciplines. The sourcing lawyer needs to understand the importance of service level agreements, scope of services, governance, change management and other key drivers of the sourcing relationship.
Stikeman Elliott has a unique multi-disciplinary approach that helps clients navigate the challenges of large scale outsourcing projects. We have extensive experience in advising and representing our clients in the evaluation, structuring and negotiation of a wide range of commercial arrangements to support strategic sourcing, including all forms of joint ventures, strategic alliances and outsourcing arrangements. More particularly, our clients are able to benefit from:
- Stikeman Elliott's leadership in the areas of mergers and acquisitions, corporate finance and other aspects relating to the transfers of assets and employees, including our proven record and ability to manage large scale transactions;
- Our technical expertise, which has been a benefit to the operational functions of clients, ensuring expertly drafted service descriptions and efficient service level agreements;
- Our dedication and commitment to continually increase our knowledge of all aspects of outsourcing, including requests for proposals, business models and performance measurements; and
- Our extensive experience in representing or acting opposite major outsourcing organizations in Canada.
In light of the current increased focus on offshore outsourcing, particularly out of the United Kingdom and the United States, Stikeman Elliott's experience on the ground in India and Asia uniquely qualifies us to assist in building strategies that identify and mitigate risk.
Multi-Industry Expertise
One of the most valuable resources available to the clients of Stikeman Elliott is the vast scope of the firm's business law offering. Our multi-disciplinary expertise allows us to provide customized, comprehensive services to address technology-related issues facing industries both inside and outside the "tech" sector. Our areas of experience include:
Banking and Securities Industries
Development of online banking and securities trading; the expansion of the Interac system and other data transfer facilities; and the evolution of virtual e-cash and related security protocols.
Health Management Industry
Documenting outsourcing arrangements and addressing the legal implications of the development of diagnostic, critical care and drug transfer systems in real time.
Insurance Industry
Development of corporate and industry databases to facilitate in real time the transfer of sales and policy data.
Privatization of Government Services
Domestic and international government privatizations, involving information technology including telecommunications and telephone systems and other ventures where licencing and other technology agreements are involved.
International Advisory Services
Identification and mitigation of transaction risks, the structuring and negotiation of project finance, the negotiation of host government assurances, including the drafting and negotiation of appropriate legislation and tax and customs regimes, and the drafting and negotiation of transaction documentation in countries in South America and the Caribbean, Central and Eastern Europe, South and South-East Asia, and Africa.
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Outsourcing Experience
Examples of recent outsourcing mandates include acting for:
- a major metropolitan centre in connection with its outsourcing of public utility maintenance and support services;
- a large telecommunications company in connection with its provision of various telecommunication support services to a regional telecommunications service provider;
- a Canadian bank in the outsourcing of its automated teller machine maintenance services;
- a crown corporation in the creation of a joint venture and the negotiation of services agreements relating to application maintenance, application development and infrastructure management services;
- a multinational furniture manufacturer in outsourcing its infrastructure management;
- a major service provider in one of Canada's largest business process and IT outsourcing transactions involving a major North American electricity and distribution company;
- a government investment board in the outsourcing of its custody, performance measurement and investment accounting services;
- a service provider in the outsourcing of the cheque processing and image capture for a Canadian bank;
- a central bank in the outsourcing of all its business processes in relation to a government retail debt program and, separately, of its mainframe operations;
- a major service provider in the strategic outsourcing of the IT functions of a major North American electricity generating company;
- Air Canada on a 7- year $1.4 billion strategic partnership with IBM to e-enable the airline, enhance customer service, and develop future solutions;
- an outsourcing organization formed by several of Canada's major banks to handle all of their cheque processing operations, including its formation, transfer of assets and personnel from the Canadian banks (involved in all legal aspects of its business, including reviewing its outsourcing agreements and assisting in the negotiation of agreements for individual transactions);
- the leading U.S. student loan service provider with respect to the outsourcing of student loan services for a major Canadian bank;
- a Canadian corporation in an outsourcing arrangement with a provincial regulatory agency respecting the receipt and publication of statutory filings and notices (involved the transfer of the agency's data to a new digital format and the migration of outsourced services over a period of several months);
- a Canadian telecommunications corporation with respect to an outsourcing arrangement with a Canadian chartered bank for the provision of customer remittance;
- a Canadian crown corporation in an outsourcing arrangement with a consulting firm respecting computer software development;
- a Canadian chartered bank in an outsourcing arrangement with a government organization respecting the deposit of pooled investment funds, the operation of trust accounts and other banking services;
- a Canadian telecommunications corporation with respect to the outsourcing of its telephone data capture services;
- a Canadian corporation in its acquisition of a new business system, and related outsourcing of disaster recovery facilities;
- a Canadian telecommunications corporation with respect to an outsourcing arrangement with a Canadian chartered bank for the provision of customer remittances
(involved the migration of outsourced services over a period of several months);
- a major service provider in the outsourcing (hosting and management) of public-key infrastructure (PKI) solutions on behalf of financial institutions or other service providers; and
- a Canadian service provider in the negotiation and establishment of one of Canada's largest electronic procurement services.
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