Outsourcing is increasingly a key strategic decision for businesses. It enables more efficient operation by focusing on core areas while leveraging the capabilities and scale of specialist service providers to effectively operate non-core areas. The economic downturn has increased the pressure on businesses to maximise competitiveness while controlling cost base with outsourcing an obvious solution for achieving this balance. Companies are engaging in multiple types of outsourcing deals including first generation outsourcing as part of a restructuring process, moving to second or third generation service providers to increase efficiencies; the renegotiation of existing outsourcing arrangements to achieve cost savings and cater for the new economic reality; or insourcing either previously outsourced activities or non-core business areas as a stand-alone (but still wholly owned) operation. As awareness increases of the potential value of outsourcing, it is increasingly acknowledged as a viable solution both by large-scale corporate groups and SMEs.
The outsourcing industry continues to evolve, both globally and locally in Ireland. The continued growth in IT, financial services and business process outsourcing (BPO) has been matched by geographical expansion to encompass offshoring to locations such as India and China and more recently nearshoring to Central and Eastern European locations to access lower production and employment costs. Ireland continues to be an attractive location for inward investment in the outsourcing sector. Future activity in this area is likely to focus on the expanding smart/knowledge economies which require innovative solutions to complex business processes. Ireland’s focus on the provision of high value added services to this sector through its highly-educated, motivated and service-centric workforce is a considerable advantage.
Recent trends which are set to drive increased market activity and add to the complexity of transactions include insourcing to Ireland; multisourcing to diversify risk, reduce costs and access best-of-breed suppliers; the growing importance of the green economy due to drivers such as high energy costs and reputational impact; the advent of cloud computing; and the inevitable increase in public sector outsourcing to meet budgetary constraints.
ByrneWallace Outsourcing Group
We understand that outsourcing is a complex and lengthy process involving strategic, structural, commercial and legal know-how. In an economic climate where maximum cost savings and minimum risk are paramount, it is crucial that clients have clear, practical, commercially focused advice from professional advisers who can be trusted to efficiently manage the outsourcing process, negotiate effective terms and achieve your long-term organisational goals. Our dedicated Outsourcing Group draws together the extensive expertise, industry knowledge and business acumen of experienced lawyers from each of the key practice areas within the firm to ensure that our clients receive a seamless, comprehensive, cradle to grave service. With this level of expertise and commercial know-how, best practice in respect of the legal issues and challenges, however complex, is a given. This frees our clients to focus on the core commercial and strategic issues driving the deal.
The key contacts and practice areas within our Outsourcing Group are noted below and we draw on the expertise of colleagues in other specialist areas within the firm such as property and facilities management, banking or dispute resolution as required. Where the transaction has an international dimension, we draw on the resources and contacts of our New York Office as well as our broad network of close contacts in leading international legal and financial services firms. Our outsourcing team is comprised of the following specialists:
- Corporate / Commercial - Feargal Brennan & Gillian O’Shaughnessy
- Intellectual Property / ICT - Darren Daly
- Employment / Transfer of Undertakings / Pensions - Michael Kennedy & Lorraine Smyth
Adding value is at the core of our service offering. Our extensive transactional and commercial experience combined with our industry knowledge, enables us to work closely with our clients to understand the key business drivers behind the initial decision to outsource. We provide valuable input into the selection and procurement process and play a proactive role in driving the deal, and project managing both the process and the key relationships. We understand that the outsourcing relationship is by its nature long-term and evolutionary and requires a close working relationship between all parties. If it is to be successful in the long term, this must be reflected in both the transaction process (which must be effectively managed to ensure no damage to key relationships) and the outsourcing contract. We add real value by designing outsourcing contracts which are sufficiently detailed and certain to successfully govern the relationship on a day-to-day basis but are also sufficiently flexible & practical to anticipate and facilitate change. We offer a full solution-focused cradle-to-grave service to our clients, whether customers or service providers.
Click here to view a comprehensive list of our outsourcing services.
Our Outsourcing Group has extensive experience in advising both domestic and international outsourcing customers and service providers. We have advised on a wide variety of outsourcing, managed services and contracted services transactions (including IT, BPO, CRM, financial services, knowledge process & facilities management outsourcing), across a broad range of industry sectors and spanning both public and private sector outsourcing.
Click here to view a list of some outsourcing transactions which members of our team have advised on.