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<br /> SOURCING<br /> REFERENCE GUIDE<br /> A reference tool for customers and service providers<br /> explaining current best practice and thinking from<br /> our global team.<br /> SOURCING REFERENCE GUIDE<br /> Foreword......................................................................................................................................................................................... 03<br /> 1. Sourcing Structures..........................................................................................................................................................04<br /> 2. Sourcing Agreement Structures ........................................................................................................................................ 09<br /> 3. The Services Description........................................................................................................................................................16<br /> 4. Offshorin<a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 1" href="http://viewer.zmags.com/publication/29e431e6?page=1"> SOURCING REFERENCE GUIDE A reference tool for cus</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 2" href="http://viewer.zmags.com/publication/29e431e6?page=2"> SOURCING REFERENCE GUIDE Foreword..........</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 3" href="http://viewer.zmags.com/publication/29e431e6?page=3"> SOURCING REFERENCE GUIDE FOREwORD Foreword S</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 4" href="http://viewer.zmags.com/publication/29e431e6?page=4"> SOURCING REFERENCE GUIDE 1. SOURCING StRUCtURES</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 5" href="http://viewer.zmags.com/publication/29e431e6?page=5"> SOURCING REFERENCE GUIDE SINGlE SOURCING – </a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 6" href="http://viewer.zmags.com/publication/29e431e6?page=6"> SOURCING REFERENCE GUIDE MUltI-SOURCING CU</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 7" href="http://viewer.zmags.com/publication/29e431e6?page=7"> SOURCING REFERENCE GUIDE CaptIvE ENtIty </a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 8" href="http://viewer.zmags.com/publication/29e431e6?page=8"> SOURCING REFERENCE GUIDE CONClUSION One sou</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 9" href="http://viewer.zmags.com/publication/29e431e6?page=9"> SOURCING REFERENCE GUIDE 2. SOURCING aGREEMENt </a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 10" href="http://viewer.zmags.com/publication/29e431e6?page=10"> SOURCING REFERENCE GUIDE Content Under the</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 11" href="http://viewer.zmags.com/publication/29e431e6?page=11"> SOURCING REFERENCE GUIDE However, many sou</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 12" href="http://viewer.zmags.com/publication/29e431e6?page=12"> SOURCING REFERENCE GUIDE Multi sourcing arr</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 13" href="http://viewer.zmags.com/publication/29e431e6?page=13"> SOURCING REFERENCE GUIDE OvERaRChING FRaMEw</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 14" href="http://viewer.zmags.com/publication/29e431e6?page=14"> SOURCING REFERENCE GUIDE In ‘fat’ master s</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 15" href="http://viewer.zmags.com/publication/29e431e6?page=15"> SOURCING REFERENCE GUIDE CONClUSION Sourcin</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 16" href="http://viewer.zmags.com/publication/29e431e6?page=16"> SOURCING REFERENCE GUIDE 3. thE SERvICES DESCRI</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 17" href="http://viewer.zmags.com/publication/29e431e6?page=17"> SOURCING REFERENCE GUIDE this and should a</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 18" href="http://viewer.zmags.com/publication/29e431e6?page=18"> SOURCING REFERENCE GUIDE However, a sourci</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 19" href="http://viewer.zmags.com/publication/29e431e6?page=19"> SOURCING REFERENCE GUIDE parties report to</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 20" href="http://viewer.zmags.com/publication/29e431e6?page=20"> SOURCING REFERENCE GUIDE 4. OFFShORING Forew</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 21" href="http://viewer.zmags.com/publication/29e431e6?page=21"> SOURCING REFERENCE GUIDE (which, in turn, </a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 22" href="http://viewer.zmags.com/publication/29e431e6?page=22"> SOURCING REFERENCE GUIDE and associated le</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 23" href="http://viewer.zmags.com/publication/29e431e6?page=23"> SOURCING REFERENCE GUIDE relevant local law</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 24" href="http://viewer.zmags.com/publication/29e431e6?page=24"> SOURCING REFERENCE GUIDE CONClUSION Offshor</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 25" href="http://viewer.zmags.com/publication/29e431e6?page=25"> SOURCING REFERENCE GUIDE 5. tIMING, DElIvERy aN</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 26" href="http://viewer.zmags.com/publication/29e431e6?page=26"> SOURCING REFERENCE GUIDE KEy CONtRaCt tERMS</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 27" href="http://viewer.zmags.com/publication/29e431e6?page=27"> SOURCING REFERENCE GUIDE Where LDs are pay</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 28" href="http://viewer.zmags.com/publication/29e431e6?page=28"> SOURCING REFERENCE GUIDE lOCal pERSpECtIvE</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 29" href="http://viewer.zmags.com/publication/29e431e6?page=29"> SOURCING REFERENCE GUIDE 6. SERvICE lEvElS F</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 30" href="http://viewer.zmags.com/publication/29e431e6?page=30"> SOURCING REFERENCE GUIDE Many sourcing tra</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 31" href="http://viewer.zmags.com/publication/29e431e6?page=31"> SOURCING REFERENCE GUIDE ■ decide on the t</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 32" href="http://viewer.zmags.com/publication/29e431e6?page=32"> SOURCING REFERENCE GUIDE provider. A service</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 33" href="http://viewer.zmags.com/publication/29e431e6?page=33"> SOURCING REFERENCE GUIDE 7. SERvICE CREDItS </a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 34" href="http://viewer.zmags.com/publication/29e431e6?page=34"> SOURCING REFERENCE GUIDE ■ Alternatively, s</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 35" href="http://viewer.zmags.com/publication/29e431e6?page=35"> SOURCING REFERENCE GUIDE Caps on service cr</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 36" href="http://viewer.zmags.com/publication/29e431e6?page=36"> SOURCING REFERENCE GUIDE Any service debit</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 37" href="http://viewer.zmags.com/publication/29e431e6?page=37"> SOURCING REFERENCE GUIDE 8. 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Is there a sin</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 46" href="http://viewer.zmags.com/publication/29e431e6?page=46"> SOURCING REFERENCE GUIDE The key question i</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 47" href="http://viewer.zmags.com/publication/29e431e6?page=47"> SOURCING REFERENCE GUIDE lOCal pERSpECtIvE:</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 48" href="http://viewer.zmags.com/publication/29e431e6?page=48"> SOURCING REFERENCE GUIDE ■ Does the sourcin</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 49" href="http://viewer.zmags.com/publication/29e431e6?page=49"> SOURCING REFERENCE GUIDE 10. bENChMaRKING aND C</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 50" href="http://viewer.zmags.com/publication/29e431e6?page=50"> SOURCING REFERENCE GUIDE what IS bENChMaRKI</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 51" href="http://viewer.zmags.com/publication/29e431e6?page=51"> SOURCING REFERENCE GUIDE Certainty of Outco</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 52" href="http://viewer.zmags.com/publication/29e431e6?page=52"> SOURCING REFERENCE GUIDE Having adjusted t</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 53" href="http://viewer.zmags.com/publication/29e431e6?page=53"> SOURCING REFERENCE GUIDE what IS CONtINUOUS</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 54" href="http://viewer.zmags.com/publication/29e431e6?page=54"> SOURCING REFERENCE GUIDE little upward mov</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 55" href="http://viewer.zmags.com/publication/29e431e6?page=55"> SOURCING REFERENCE GUIDE 11. COMplIaNCE Fore</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 56" href="http://viewer.zmags.com/publication/29e431e6?page=56"> SOURCING REFERENCE GUIDE Importantly, this</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 57" href="http://viewer.zmags.com/publication/29e431e6?page=57"> SOURCING REFERENCE GUIDE outsourcing rules</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 58" href="http://viewer.zmags.com/publication/29e431e6?page=58"> SOURCING REFERENCE GUIDE Documentation and </a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 59" href="http://viewer.zmags.com/publication/29e431e6?page=59"> SOURCING REFERENCE GUIDE pre-Contractual D</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 60" href="http://viewer.zmags.com/publication/29e431e6?page=60"> SOURCING REFERENCE GUIDE ■ ensure that the</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 61" href="http://viewer.zmags.com/publication/29e431e6?page=61"> SOURCING REFERENCE GUIDE OthER COMplIaNCE I</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 62" href="http://viewer.zmags.com/publication/29e431e6?page=62"> SOURCING REFERENCE GUIDE 12. Data pROtECtION </a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 63" href="http://viewer.zmags.com/publication/29e431e6?page=63"> SOURCING REFERENCE GUIDE pROCESS The DPA es</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 64" href="http://viewer.zmags.com/publication/29e431e6?page=64"> SOURCING REFERENCE GUIDE the need </a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 65" href="http://viewer.zmags.com/publication/29e431e6?page=65"> SOURCING REFERENCE GUIDE b) European Commi</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 66" href="http://viewer.zmags.com/publication/29e431e6?page=66"> SOURCING REFERENCE GUIDE lOCal pERSpECtIvE:</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 67" href="http://viewer.zmags.com/publication/29e431e6?page=67"> SOURCING REFERENCE GUIDE already subject to</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 68" href="http://viewer.zmags.com/publication/29e431e6?page=68"> SOURCING REFERENCE GUIDE CONClUSION If a so</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 69" href="http://viewer.zmags.com/publication/29e431e6?page=69"> SOURCING REFERENCE GUIDE 13. tUpE aND EMplOyEE </a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 70" href="http://viewer.zmags.com/publication/29e431e6?page=70"> SOURCING REFERENCE GUIDE lOCal pERSpECtIvE</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 71" href="http://viewer.zmags.com/publication/29e431e6?page=71"> SOURCING REFERENCE GUIDE Business transfer </a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 72" href="http://viewer.zmags.com/publication/29e431e6?page=72"> SOURCING REFERENCE GUIDE customer for contr</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 73" href="http://viewer.zmags.com/publication/29e431e6?page=73"> SOURCING REFERENCE GUIDE As part of their </a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 74" href="http://viewer.zmags.com/publication/29e431e6?page=74"> SOURCING REFERENCE GUIDE Duty to inform an</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 75" href="http://viewer.zmags.com/publication/29e431e6?page=75"> SOURCING REFERENCE GUIDE Offshoring Unfortu</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 76" href="http://viewer.zmags.com/publication/29e431e6?page=76"> SOURCING REFERENCE GUIDE However, if an emp</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 77" href="http://viewer.zmags.com/publication/29e431e6?page=77"> SOURCING REFERENCE GUIDE Adjustments betwee</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 78" href="http://viewer.zmags.com/publication/29e431e6?page=78"> SOURCING REFERENCE GUIDE Where consultation</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 79" href="http://viewer.zmags.com/publication/29e431e6?page=79"> SOURCING REFERENCE GUIDE 14. tERMINatION tRIGGE</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 80" href="http://viewer.zmags.com/publication/29e431e6?page=80"> SOURCING REFERENCE GUIDE The compromise in</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 81" href="http://viewer.zmags.com/publication/29e431e6?page=81"> SOURCING REFERENCE GUIDE provider will qui</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 82" href="http://viewer.zmags.com/publication/29e431e6?page=82"> SOURCING REFERENCE GUIDE its demand for th</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 83" href="http://viewer.zmags.com/publication/29e431e6?page=83"> SOURCING REFERENCE GUIDE 15. ExIt MaNaGEMENt </a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 84" href="http://viewer.zmags.com/publication/29e431e6?page=84"> SOURCING REFERENCE GUIDE It is difficult t</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 85" href="http://viewer.zmags.com/publication/29e431e6?page=85"> SOURCING REFERENCE GUIDE services are deli</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 86" href="http://viewer.zmags.com/publication/29e431e6?page=86"> SOURCING REFERENCE GUIDE MaNaGING ExIt DURI</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 87" href="http://viewer.zmags.com/publication/29e431e6?page=87"> SOURCING REFERENCE GUIDE 16. SUbCONtRaCtING </a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 88" href="http://viewer.zmags.com/publication/29e431e6?page=88"> SOURCING REFERENCE GUIDE The customer will</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 89" href="http://viewer.zmags.com/publication/29e431e6?page=89"> SOURCING REFERENCE GUIDE Multi-party dispu</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 90" href="http://viewer.zmags.com/publication/29e431e6?page=90"> SOURCING REFERENCE GUIDE ■ The right to d</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 91" href="http://viewer.zmags.com/publication/29e431e6?page=91"> SOURCING REFERENCE GUIDE 17. SECONDaRy SOURCING</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 92" href="http://viewer.zmags.com/publication/29e431e6?page=92"> SOURCING REFERENCE GUIDE Identify the best</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 93" href="http://viewer.zmags.com/publication/29e431e6?page=93"> SOURCING REFERENCE GUIDE Renewal of a less</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 94" href="http://viewer.zmags.com/publication/29e431e6?page=94"> SOURCING REFERENCE GUIDE Efficiency Howev</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 95" href="http://viewer.zmags.com/publication/29e431e6?page=95"> SOURCING REFERENCE GUIDE avoids the (not i</a> <a title="2669785_Sourcing_Reference Guide_Opt1_V13_Zmag page 96" href="http://viewer.zmags.com/publication/29e431e6?page=96"> SOURCING REFERENCE GUIDE 18. 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