Legal news and trends for Canadian in-house counsel and c-suite executives
Issue link: https://digital.canadianlawyermag.com/i/50890
FEATURE Outsourcing grows in By Daryl-Lynn Carlson T he practice of outsourcing a portion of a company's operations was once perceived as a practical means of realizing cost savings or securing access to a much- needed labour pool. But the complexities of such ar- rangements are growing as more deals go sour. Therefore, the sheer detail that needs to be considered in the preparation of contracts and covenants to protect corporate in- terests means corporate counsel will likely need help. Whether the outsourcing service provider is domestic or overseas, the due diligence involved will extend beyond the pur- view of in-house counsel capabilities. "You can be the best in-house counsel but there's no way you can have the breadth of knowledge to manage all these issues for your company," says Theo Ling, a partner at Baker & McKenzie LLP in Toronto whose practice involves advising companies and 18 A UGUST 2008 C ANADIAN Lawyer INHOUSE corporate counsel on outsourcing, commercial agreements, and compliance issues. The biggest challenge, he says, is that the scope of issues that need to be taken into consideration is well beyond just legal concerns. "I know as part of the compliance requirements their job is increasingly managing not just legal risks but all these other types of risks," says Ling. "They really need to see the big picture." Lisa Abe, partner at Fasken Martineau DuMoulin LLP, fo- cuses on facilitating offshore outsourcing and agrees the mag- nitude of issues to be considered has broadened. "I think that right now, given what we've seen in the news recently, the big concerns with international outsourcing from a social-responsibility perspective are things like child labour, money laundering, terrorism, animal rights, breaches of privacy, complexity Now that global outsourcing is becoming increasingly popular and almost commonplace, the paperwork and nature of contractual agreements have evolved, following various experiences of lawyers and companies involved.