Staying Out of Court: Dispute Prevention and Management in Outsourcing Contracts

by Sara Cullen

Think of disputes that occur in outsourcing deals as mushrooms. To grow and spawn, they need an environment that is dark and full of fertilizer. Your goal is to create an environment that is well lit, with little fertilizer for the mushrooms to feed on. Disputes are not often caused by one particular issue but are usually triggered by an accumulation of many adverse events that eventually lead the parties to start "throwing mud at each other." The case below shows how seemingly superficial events can create a "fertilized" field ready for disputes.

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Staying Out of Court: Dispute Prevention and Management in Outsourcing Contracts15 July 2007