07.15.08
Develop Your Risk Profile In Advance
One of the major sticking points in most outsourcing and services deals is risk allocation. If the supplier is presenting the paper, risk will generally allocated entirely to the customer. If the customer is presenting the paper, risk will be allocated entirely to the supplier. Then, after the business terms are agreed upon, long, drawn-out discussions surrounding warranties, indemnities and limitations of liability ensue. This occurs in nearly every deal - and those of us in the practice have our “canned” reasons why our position is proper and important.
