More and more companies have begun to source related functions to multiple providers. This practice, know as "multi-sourcing", or "best-in-breed sourcing", has become popular with companies in their second or third generation of outsourcing. This article describes single and multi-sourcing models, looking at the advantages and disadvantages of each, reviews governance issues, describes methods of risk mitigation, and explores the impact of cloud computing on outsourcing. This article is part of the PLC multi-jurisdictional guide to outsourcing. For a full list of contents visit www.practicallaw.com/outsourcinghandbook.
This chapter considers, in the context of IT outsourcing agreements, the nature and effect of the following contractual methods to mitigate the risk of disputes: jurisdiction clauses, arbitration clauses, governing law clauses, and dispute resolution schemes. This article is part of the PLC multi-jurisdictional guide to Outsourcing. For a full list of contents visit www.practicallaw.com/outsourcinghandbook.