Overview

International outsourcing requires a slight change in approach, due to the difference in customs, values and governmental regulation as well as the subjection to different a legal system. The local approach to outsourcing cannot always be applied internally and is therefore why it is important for organisations to take these factors into account when contracting out.

Contractual issues can arise during domestic transactions, organisations must possess the knowledge to deal with these situations including within an international context such as export and import regulations, logistical operations, difference in standards, foreign taxation and FX.

This uniquely designed program provides an introduction to the topic of Outsourcing and Contracting out in both a domestic and international sense. We have structured the program to make delegates aware of the issues that can arise when working in the international arena of outsourcing, possession of this knowledge can significantly improve a delegates career in this field as well as reduce the operation costs of the organisation in which they work.

Coverage

• Contract clause selection in accordance to situation
• Domestic and international sourcing methods
• Price development for contracting out transactions
• How to locate national and international contractors and suppliers
• Currency protection
• Labour rate analysis

Objectives

• Understand International Labour Rates
• Create strong contracts which protect your organisations interests and reduce potential risk
• Finding suppliers and outsourcing process
• Reduce issues when switching contractors
• Learn the benefits of outsourcing on both a domestic and global scale
• Develop an understanding of how contracts are created
• In-depth contract clause analysis
• Improve knowledge of contractual legislation

How This Helps Your Organization?

• Reduction in total costs of materials, services and equipment
• Improved supplier relationships and performance
• Increased productivity through higher service levels due to contractual obligations
• Stronger understanding of international outsourcing transactions
• Competitive advantage due to improved value on outsourcing contracts

How This Helps You Personally?

• Increased knowledge in international deals
• Improved skill set with regards to creating contracts and outsourcing efficiently
• Increased confidence
• Improved ability to produce the requirements of senior managers at a low cost
• Increased recognition within the organisation
• Improved work performance and managerial skills

Course Structure

Reasons for Outsourcing

• Why do organisations choose to outsource?
• Domestic Vs. Global outsourcing
• Analyse the outsourcing and contracting out process
• How to implement outsourcing to break into existing markets
• What are International Labour Rates?
• Discuss the processes behind selecting the services or tasks that are required to be outsourced
• Communicating the reasoning for outsourcing to senior management for approval

Outsourcing Approaches

• How to deal with the sales front end office of suppliers both domestic and global
• Dealing with overseas and domestic sourcing agencies
• Using domestic 3rd parties for facilitating contracts
• What is the International Purchasing Office used for?
• Discuss the advantages and disadvantages to the direct approach to outsourcing
• How to identify potential suppliers that the organisation can use
• How to conduct an introductory interest request with outsourcing agents, suppliers or 3rd parties
• How to rank potential suppliers and outsourcing agents in accordance to their merit and performance
• International Tender
• Dealing with different cultures

Price

• Discuss potential pricing issues that may arise when negotiating a potential outsourcing contract
• Currency Issues that may occur when dealing with international outsourcing
• INCOTERM
• The implications of Import Duty on price
• Transportation costs and it’s positioning within price negotiation
• Implementing the use of deal brokers for negotiating
• Drawing up clauses and terms within a contract to stipulate terms and conditions
• Appropriate methods of payment available

Contract Terms & Conditions

• What are the standard terms and conditions within an outsourcing contract?
• Introduction to the Contract For The International Sale of Goods act (CISG)
• Analysis of the Critical Integration contract clause, it’s purpose and use
• Discuss how penalties are issued and their implications on both parties
• Bank Guarantee, Bond and Insurance claims
• Contract clauses that can be created to prevent corruption and fraudulent activity
• Dealing with last minute changes and breaches to a contract clause
• Conflicts of Law
• Terminating a contract and the reasoning for a valid suspension
• Analysis of Acceptance Clauses, it’s purpose and use

Conflict Resolution

• How to execute a solid negotiation with the contractor
• How to reduce the risk of negligence
• Warranty Issues
• Creating checklists for shipment
• International Contract Administration
• Creating a checklist for export
• The importance of dispute clauses within the contract