This website uses cookies

This website uses cookies to ensure you get the best experience. By using our website, you agree to our Privacy Policy

International In-house Counsel Journal logoInternational In-house Counsel Journal logo

Generative AI and IT Outsourcing

January 2024
OutsourcingIT

Abstract

Outsourcing is a process by which an organisation engages a third party with appropriate expertise to run some of its services on its behalf. It has been subject to various waves of change over the years. I have seen it suggested that the origins and history of outsourcing took shape during the Industrial Revolution when the way factories operated and sourced raw materials was transformed as they were no longer limited to a geographical location. For example, US manufacturers would import raw materials which were processed in Scotland thus maintaining quality while reducing cost – a classic outsourcing benefit. This has been a theme for outsourcing as customers seek to benefit from and leverage the expertise of suppliers particularly with skill sets like computer and business services. Outsourcing as we know it today properly commenced in the 1980’s, initially with reference to non-core services such as accounting, data processing and human resources. Wikipedia describes outsourcing quite succinctly: “The term outsourcing, which came from the phrase outside resourcing, originated no later than 1981. The concept, which The Economist says has "made its presence felt since the time of the Second World War", often involves the contracting out of a business process (e.g., payroll processing, claims processing), operational, and/or non-core functions, such as manufacturing, facility management, call center support.”

Read Paper

Author

Portrait image of Clive Davies
Clive Davies
Senior Counsel and Professional Development Manager Legal & Commercial, UK&I, Fujitsu Services Limited, UK

Clive is a senior counsel with Fujitsu in the UK advising in particular on major IT service contracts with customers in the public and private sectors. Prior to joining Fujitsu Clive was the lead IT and outsourcing partner in London at two leading city law firms. Clive specialises in advising on large outsourcing agreements. He has a particular interest in improving the contracting process, believing that a successful contract supports effective delivery. He is also the professional development manager for the legal and commercial function in Fujitsu UK seeking to improve training and individual capability. Clive lectures and writes regularly on IT subjects. Clive is past chair and Fellow of SCL, a past chair of ITechLaw's In-House Committee and an editor of Communications Law.

Company

Fujitsu Services Limited

Fujitsu Limited is a Japanese multinational information and communications technology equipment and services corporation, established in 1935 and headquartered in Tokyo. Fujitsu is the world's sixth-largest IT services provider by annual revenue, and the largest in Japan, in 2021. See Fujitsu Limited’s website at https://www.fujitsu.com/global/. Fujitsu Services Limited is its UK subsidiary which employs over 7000 people and whose purpose is to make the world more sustainable by building trust in society through innovation. This is about seeing the value technology can create for customers today and in the future. See Fujitsu Services Limited’s website at https://www.fujitsu.com/uk/.

Related Papers

Navigating Through EU Outsourcing Regulations when Considering Cloud Migration of Services
Financial Entities (FEs) outsource their information and communication technology services (ICT services) to cloud service providers (CSPs) to increase operational efficiencies by streamlining back office operations and reducing costs by...Read more
Portrait image of Sofia Skroubi
Sofia Skroubi
Senior Associate General Counsel, Nasdaq , Sweden
Outsourcing Ten Years On
1997 to 2007 is the era when Tony Blair was prime minister of the United Kingdom, the Internet exploded into a personal and business medium beyond all recognition and outsourcing...Read more
Portrait image of Clive Davies
Clive Davies
Senior Counsel, Fujitsu Services, UK
Negotiating IT Service Contracts – In House v Private Practice Legal Models
I have been privileged to work over my career as a partner in private practice with leading City firms in London and as a senior in-house lawyer in global companies....Read more
Portrait image of Clive Davies
Clive Davies
Senior Counsel and Professional Development Manager Legal & Commercial, UK&I, Fujitsu Services Limited, UK
Software Darwinism – When Conditions Change, Software Must
In the rapidly evolving landscape of technology, staying up to date with software is not merely a matter of convenience or efficiency; it is increasingly becoming a legal imperative. Software...Read more
Portrait image of Chris Mermigas
Chris Mermigas
Head of Legal, RSA, USA