A good commercial lawyer sees beyond the law Vinge law firm Outsourcing Wuxi 11 October 2007 Kain Grauers, chief rep. Shanghai office.

A good commercial lawyer sees beyond the law

Vinge law firm

Outsourcing

Wuxi 11 October 2007

Kain Grauers, chief rep. Shanghai office

Karin Grauers

• Swedish attorney – member of the Bar

• Junior judge – Vinge for 27 years

• Vinge – ca 300 lawyers, alliances Denmark and Norway, close co-operation Finland

• In China since 1985, in Shanghai since 1999

• Specialised in IT/IP since mid 80’s

• Ranked as a leading lawyer in Sweden in the area

The six largest law firms in Sweden

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Vinge

MSA

Linklaters

Setterwalls

G & D

White & Case

Revenues MSEK

* Vinge and MSA are among the 50-60 largest law firms in Europe

Independent lawfirm

• Represents clients from all over the world

• Traditionally, representing challengers of monoplies and entrepreneurs

• Often represents the ”foreign” party

From perspectives of

Suppliers and Customers

Important issues for companies considering outsourcing

• Management decision – strategic IT decisions

• Do not outsource ”problems”

• Get your organisation involved and committed

• Keep competence to be an efficient Customer

• Abundantly clear reasons/expectations – communicate!

- save money

- more professional services

- higher level of expertise and more resources

- concentrate on ”core-business”

• Carefully considered SLAs!

SLAs

• ”Service Level Agreements are the only definition of what you buy and get in an outsourcing deal and are therefor central to the outsourcing contract. Without them you get what is delivered, not what is required, and you have no reference point against which to obtain remedy.”

Important issues for companies considering outsourcing 2

• Secure verification

• Open up for CHANGES

• Plan exit – hw? Licenses?

• Consider sales/ Change of Control

• CONFIDENTIALITY!

• Dispute resolution – escalation?

Disadvantages to be considered

• Loss of control

• Security issues

• Loyalty conflicts

• Dependence on Supplier

• Less flexibility?

Important issues for Suppliers

• Do not ”over-sell”

• Understand Customer needs, reasons and business

• Agree on payment – and penalties! - according to SLAs

• Exits – be a good sport!

Low CSIs over the years

• More than 50 % of Customers are unsatisfied

• Many regret the outsourcing

• Time consuming disputes

• Customers loose – Suppliers loose

Success factors

• Customer needs and reasons well identified and established

• Customer must have realistic expectations

• Customer’s organisation must be prepared and willing

• Retained competence on Customer side – counter party

• Close follow-ups, regular meetings

• Supplier needs to be well prepared and knowledgeable about Customer’s business and reasons

• Set rules for handling of changes, disputes and exits.

Contact Vinge Shanghai

Advokat Karin Grauers

Gu Qun

Advokatfirman Vinge KB

Room 1206/1208, Shanghai Times Square

93 Huai Hai Zhong Road

200021 Shanghai

Tel. +86-21-5382 0196

Fax +86-21-5382 2353

E-mail addresses: [email protected]

[email protected]

www.vinge.se