Information Technology Outsourcing

Information Technology Outsourcing

Information technology outsourcing (ITO) has been around for decades, so experience in large sophisticated transactions, with numerous moving parts, is generally the price of admission. Our lawyers have executed dozens of ITO transactions around the world valued at billions of dollars over the past two decades. We have experience with each of the major towers involved in ITO — mainframe, server, data center, help desk, telecommunications, network, desktops and application development and maintenance (frequently all at the same time).

ITO is changing and evolving though, and Hunton & Williams LLP is at the forefront of those changes. Increasingly, ITO transactions involve multi-shore and/or multi-vendor delivery models with a lessening dependence on asset ownership transfers, due in part to intriguing new models, such as Remote Infrastructure Management Outsourcing and "virtual" captives. We make it our business to know the ITO industry, where the industry is headed and how it impacts your organization. Our ability to stay on top of the unique and changing aspects of these transactions is at the core of the service we provide.

ITO transactions critical to the ongoing operations of an organization necessarily involve many complex issues, requiring subject matter experience from a wide variety of practice areas. As such, our team includes lawyers in areas as diverse as tax, privacy and data management, intellectual property, immigration, benefits and labor and employment. For example, ITO transactions frequently include a significant transition of personnel from the customer to the supplier for which we rely on our labor, employment, and ERISA subject matter contacts. We are also glad to, and often do, work with our clients' inside and outside subject matter experts in these areas — while providing perspective unique to transactions of this type.

ITO transactions will also increasingly call on the assets of our offices located in the EU, both in London and Brussels. We have extensive experience working with multi-national companies, with operations both in Europe and in the United States. Our EU-based outsourcing team brings all of the resources of the firm to bear and, through our right sized and right placed platform, we can deliver lawyers in the key European jurisdictions. In addition, our offices in Beijing and Bangkok offer a window into increasingly important Asian countries.  If a transaction involves a jurisdiction where we do not happen to have an office, we can and do deploy our hand picked network of local contacts to deliver a seamless, integrated service offering — no matter where your IT assets may be located.

A brief survey of some of our recent ITO experience appears below:

Recent Experience

  • Represented a Fortune 500 specialty retailer in comprehensive multi-process transactions, including ITO and involving over a dozen vendors and multiple service locations.
  • Represented a global specialty retailer in its global transaction involving cross-border data flows, valued at approximately $150 million.
  • Represented a Fortune 100 financial services/insurance company in its multi-shore IT infrastructure transaction with IBM, valued at approximately $480 million, including operations in five countries. We believe that this was the largest transaction of its type signed in 2006.
  • Represented the UK Home Office on a £250 million outsourcing of IT support and development.
  • Represented a major Indian-based supplier on its role in the National Health Service National Programme for IT — the largest ever UK government technology project.
  • Represented a Fortune 200 financial services/insurance company in its comprehensive IT infrastructure transaction with ACS valued at approximately $380 million, including network, desktop, help center, telecommunications and data center services.
  • Represented a major US energy company in a $1.6 billion multi-process transformation and outsourcing arrangement with IBM, including all aspects of data center operations.
  • Represented a Fortune 20 manufacturing company in its $300 million ITO transaction with IBM, involving outsourcing of data center (mid-range and mainframe), network, desktop, Internet hosting and help desk services.
  • Represented a major multi-media company in its $150 million comprehensive IT infrastructure and ADM transaction with IBM.
  • Represented a multi-national defense provider in the renegotiation of its $1.6 billion ITO relationship with CSC, a complex transaction involving a central agreement and separately negotiated business unit agreements for various organizations in the United States and the United Kingdom.
  • Represented a Fortune 15 financial services/insurance company in the renegotiation of its $700 million infrastructure transaction with a tier one supplier.

Global Privacy Experience
Privacy, information management and data security strategies are key components of almost every outsourcing transaction. One of our key differentiators is the coupling of our outsourcing experience with the resources of our global information management team, which Computerworld ranked as the top privacy advisor in each of its four surveys. We stay at the leading edge of privacy policy development around the world through our think tank, The Centre for Information Policy Leadership @ Hunton & Williams.