Proactive remedies schemes: a manifesto for a new approach to outsourcing contract solutions
Roger Bickerstaff
Traditional contract remedies are compensatory, with the objective of putting the “wronged” party in the same position as if the breach had not occurred. Remedies in outsourcing contracts have largely followed this model, even though this approach may have a questionable validity in a long term relationship between service provider and customer, apart from in the most extreme circumstances leading to the termination of an outsourcing contract.
Service credits are the main operational financial remedy used in outsourcing contracts but their effectiveness is increasingly being questioned. There is a need to assess the range of remedies that are used in outsourcing contracts to check to see if a more effective range of proactive solutions can be used to promote success in outsourcings, instead of or as well as compensating for failures. Roger’s presentation will set out a manifesto for a more pro-active range of remedies in outsourcing contracts.
