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Abstract: Global Outsourcing of IS Application Development Staff

Project Abstract: Consumer Products Manufacturer and Marketer

Background

A well known manufacturer and marketer of branded food products was seeking to reduce its costs for application development support globally. It had a combination of a number of small IS organizations around the world with large installations in the US and the UK. The staff had a range of skills mostly centered around older technology and would need significant training to upgrade to newer technology platforms.

Problem Summary

The client had gone through a competitive bidding process themselves and had selected a finalist vendor. However they needed assistance in developing and negotiating a global contract. While the client had conducted an evaluation there were a number of complex issues still to be resolved including the definition, development and practical use of a “development bank” of people resources that could be used anywhere in the world.

TBI’s Approach

TBI worked with a client team and a legal team to develop a suitable contract that would govern the outsourcing relationship. TBI provided templates for many of the contract schedules and worked with the vendor team and the legal team to modify them appropriately as well as constructing global and regional master services agreements. Negotiations were held on a face to face basis with non US participants traveling to the US headquarters. The development bank concept was defined in great detail and the issues of cross border sharing of resources were addressed and resolved.

Successful Business Solution

The client received:

• Global and regional master services agreements
• All required schedules for pricing, service levels, roles and responsibilities, etc., with best practices terms and conditions