Failed Deals: Software Development – De Beers / Atos Origin
October 20, 2010 by Bierce & Kenerson, P.C. ·
Written by William B. Bierce and Henry (“Hank”) Jones, III When can a software developer (such as Atos Origin) walk off a critical systems design project for business-process transformation when the customer (such as the De Beers Diamond Trading) fails to provide the necessary subject matter expertise? Atos Origin found out, in a London court […]
How to Achieve Innovation through Outsourcing: Shifting the Paradigm
March 19, 2010 by Bierce & Kenerson, P.C. ·
Can an enterprise customer get real innovation through outsourcing? It depends. After looking at a case study in contract manufacturing and finance and accounting outsourcing, we can draw some lessons on the squeaky wheel that will need lubrication beyond effective governance. New Product Development. Recently, Bierce & Kenerson, P.C. was engaged by a global enterprise […]
When is a Contractual Limitation of Liability Invalid and Unenforceable? American Public Policy Exceptions to Exculpatory Clauses in Telecommunications
December 21, 2009 by Bierce & Kenerson, P.C. ·
An essential element of risk management in any commercial contract for the sale of services or goods is the clause limiting the vendor’s liability. In the sale of goods, the policy limitations are set forth in the Uniform Commercial Code, which invalidates clauses that deprive the customer of an “essential remedy” or the clause is […]
Case Study for Legal Risk Management for “Cloud Computing”: Data Loss for T-Mobile Sidekick® Customers
October 29, 2009 by Bierce & Kenerson, P.C. ·
Telecom providers are increasingly outsourcing IT functions for “cloud computing.” A widespread data loss in mid-October 2009 by an IT outsourcer to a mobile telephony provider underscores the practical limitations of using the Internet as a data storage platform. In this episode, subscribers to T-Mobile Sidekick® mobile devices were informed that their personal data – […]
Case Study: Farmland Industries Inc.
October 16, 2009 by Bierce & Kenerson, P.C. ·
Farmland Industries Inc., a federation of 1,700 rural farm cooperatives that is the largest farm cooperative in the United States, filed for bankruptcy protection on May 31, 2002, after reportedly rejecting an offer by Smithfield Foods Inc. for acquisition of Farmland’s meat business. The meat business is operated as a joint venture with U.S. Premium […]
Joint Venture between IBM and French Bank BNP Paribas
October 16, 2009 by Bierce & Kenerson, P.C. ·
On December 19, 2003, IBM and the French bank BNP Paribas announced the creation of a joint venture to manage BNP Paribas’s IT operations. The deal represents the evolution of a “partnership” model between service provider and its customer within the framework of the European Union’s protective labor laws. Scope. The joint venture was structured […]
Reciprocal Outsourcing by EDS and WorldCom, Inc.
October 16, 2009 by Bierce & Kenerson, P.C. ·
In July 2002, the EDS share price was rocked by the sudden decline and subsequent bankruptcy filing of WorldCom, Inc., a telecom services company. In October 1999, EDS had entered into a reciprocal deal with WorldCom, where EDS was providing IT services and EDS agreed to act as a reseller for WorldCom. The total of […]
Proctor & Gamble Highlights New Legal and Business Issues in Multi-Sourcing
October 16, 2009 by Bierce & Kenerson, P.C. ·
Background This case study examines some extraordinary circumstances involving competitive sourcing of services. It is not typical of the normal competitive sourcing, but it highlights some emerging business and legal issues in managed competitive sourcing of global services. During the late 1990’s, Proctor & Gamble Co. (“P&G”), maker of soaps, toiletries and personal care consumer […]
Inside Job: Bank One’s Decision to Insource Bank’s IT Operations
October 16, 2009 by Bierce & Kenerson, P.C. ·
Bank One, the sixth largest bank holding company in the United States with $270 billion in assets, has been conscientiously in-sourcing its technology, managing the integration of bank acquisitions through its own internal teams. In November 2002, the bank announced the completion of a major systems conversion in Illinois to consolidate its information technologies on […]
C&W US Clients Face Uncertain Future
October 9, 2009 by Bierce & Kenerson, P.C. ·
By Ed Agar, primesourcingadvisors.com October 27, 2003 – The drama surrounding Cable and Wireless’ US hosting business remains an unresolved story for its approximately 1,500 clients. Since declaring its intention to exit the U.S. market in early summer, C&W has yet to deliver a clear update with regard to its business direction. C&W seems to […]