Outsourcing Dilemma: The Search for Competitiveness, The

Redundancy issues

There is nothing to prevent the parties to the contract making any arrangements they like regarding which of them pays for the possible redundancies at each stage. However, it is normal for the client to indemnify the service provider for redundancy costs and any TUPE implications arising from the actions necessary to complete the transition, including relocation costs, due as a result of the transfer of services and from any related implementation of new systems. These indemnities will normally cover staffing implications at any of the client’s other companies, sites and business functions that might be affected.

The provider’s responsibility for any further redundancies normally begins after the transition stage has been ...