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Outsourcing

 
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The IACCM Outsourcing Network

The purpose of the Outsourcing Network is to provide its members with insights to new trends and emerging practices in the fields of outsourcing as they relate to contracting, commercial and relationship management.  While these will be in the context of the outsourcing  domain, they will draw from knowledge and ideas that are current and relevant in other domains and across all IACCM membership sectors. A key goal is to improve the performance of contracts and relationships in the outsourcing sector.

The objectives will be met by sharing ideas, discussing challenges, exploring new directions and, where appropriate, initiating research or inviting experts to present on key topics related to contracting, commercial and relationship management in the outsourcing domain.

Meetings will be virtual (by phone or webinar) unless in specific cases there is an agreed wish to have physical meetings or workshops to develop specific initiatives.

Group Mission/Vision:

Provide its members with insights to new trends and emerging practices in the fields of contracting, commercial and relationship management related to outsourcing.

 
 
Network Updates

Ask The Expert: Balancing Collaboration and Compliance

The Buyer/Seller relationship is changing and the contracts that support those relationships are changing as well. We have all heard that companies are trying to extract more value from their significant supplier relationships and are focusing more intently on how buyers and sellers collaborate. However, is there a hidden cost to this?

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ADVICE NEEDED: difficult contract management position - customer & shareholder contracts

Hi, My company outsources key services to another company (Company X). However, we also own a portion of Company X as it was set up as a joint venture. I am the contract manager for the services Company X provides to us (I'm the customer). I am also the contract manager for the services my company provides to Company X, as part of the joint venture. I find this position very difficult and would like to build a strong case for hiring another manager to take one of the contracts. Are there any principles in IACCM I can use to help build this business case? Any advice/recommendations would be greatly appreciated, Thanks

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Drafting Big, Complex Statements of Work

In contracts about complicated services, the hardest terms to draft appear in statements of work. SoW's for large projects demand long lists of duties from the vendor. And usually they're interwoven with supporting tasks from the customer and its other suppliers, along with countless contingencies, assumptions, and exceptions. Putting all those pieces into an effective contract challenges the best drafters. The result is often hundreds of pages of baffling mess. Yet the path to good drafting is simple: write outcome-driven descriptions. In other words, describe the technology the vendor will create or run or both, and then stop typing.

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Webinar: As a service contracting: challenges and negotiation points

More and more products - including software - are today offered 'as a service'. In theory, this offers buyers far greater flexibility and much lower investment costs. But this form of contracting introduces an array of new challenges and issues, ranging from protection of data, to security of supply, to uncertainty over future charge levels. For suppliers too, 'as a service' creates a range of complex issues - managing performance, monitoring usage, remaining competitive in a fast-moving market.

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AbbVie-SirionLabs case study: getting contract management right in a services-centric supply chain - IACCM Americas Conference 2018

Enterprises today face multiple headwinds from increasing costs, shrinking margins, growing competition, and stringent regulations. To overcome these challenges, businesses are exploring ways to drive operational efficiency by strengthening technology infrastructure, analytics capabilities and nurturing an eco-system of strategic supplier partnerships. As the supply chain becomes more services-centric to support this transformation, the traditional approach and technology for procurement, contract and supplier management are proving to be inadequate in handling the dynamic nature of these engagements.

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Do unreasonable terms drive innovation?

Suppliers understandably complain about the unreasonable terms and narrow evaluation methods used by some of their customers. They are often right to point at the failures that result from such behavior, when it results in incompetent and sometimes dishonest suppliers winning business that they have no chance of performing, or the burden of risk promotes an adversarial relationship.

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