IN A NUTSHELL
This reference guide explains sourcing agreements: how they are structured and the key considerations and issues which shape them. However before considering the agreement itself, it is useful to understand some of the sourcing structures which most commonly sit behind that legal document.
- Under a simple, single-sourcing model, the agreement is entered into by the customer and a single service provider;
- Multi-sourcing structures are those where the customer contracts with a number of different service providers concurrently, each of which then provide a part of the overall services;
- In joint venture arrangements the customer contracts with a special purpose joint venture company, often owned by the customer and its service provider;
- A captive is a customer subsidiary which has been set up in another jurisdiction to provide the services back to the customer; and
- Build, operate, transfer models are those where, as the name suggests, the service provider builds the asset, initially runs it, but ultimately the asset is transferred back to the customer to operate itself.
Please see full guide below for more information.
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