IT outsourcing for architects

By Jimmy Desai
Partner, Blake Lapthorn

Communicating quickly with clients and third parties via email is vital for architects. So too is having good document management systems to store and keep track of plans, drawings and applications. To achieve this you need to select the right IT supplier.

The first stage is to prepare a shortlist of IT suppliers so that you can see what is on offer and compare and contrast services and prices. Going with a brand name global IT supplier might be a safe option but this can come at a high price. Further, a global IT supplier may not be the right choice to provide the specific services that you need and may also have less time to dedicate to your business, particularly if it has more lucrative customers to support. However, if you choose a small IT supplier it may not have the resources, capability, experience or back up services that you are looking for. In some cases, choosing an IT supplier that is of similar size or financial standing to you is a good option as this can be a partnership of equals.

Following supplier selection, do not simply sign the IT supplier’s terms and conditions. This is because these should be amended and tailored to your needs. Important clauses include:

• Duration – You do not want to be locked into a contract long term. Typical contracts will last from 1 to 5 years with break options and options to renew. You may want the right to exit upon notice to the IT supplier (e.g. upon 3 months notice) as you may want flexibility. It could be that your business needs may change (for example, if you merge or if your business is sold to a third party). Note that the IT supplier may require an exit fee if you want to exit the contract mid-term and for no fault of the IT supplier
• IP – you will want to ensure that rights in work (e.g. technical specifications, system layouts, back plans etc.) created for you in relation to your IT systems belongs to you. This is because you may want to use this work even after the contract has ended and will not want the IT supplier to use this work for your competitors
• Limitation of Liability – The IT supplier will often try to cap its liability to a fixed amount (e.g. £1 million) and will also try to exclude or limit its liability to you if things go wrong. These exclusions need to be carefully scrutinised as they will severely affect your right of redress
• SLA – you should ensure that you have a Service Level Agreement (SLA) that specifically defines the services you will receive and their standards (together with what compensation you are entitled to if those services are sub-standard)
• Exit Plan –Towards the end of the contract you will want to oblige the IT Supplier to assist you with an orderly wind down of the services and also with a smooth transition of your IT Systems back to you or your replacement IT Supplier
• Employment – There should be provisions to deal with employment issues in the contract including TUPE (The transfer of undertakings (protection of employment) regulations 2006). TUPE covers employee transfers between your business and the IT Supplier both at the start of and the end of the contract.

Choosing IT and an IT supplier may appear relatively mundane but this is business critical. Hence it is vital to dedicate sufficient time and resources to an IT project and the IT contract that governs it.

Related NBS information:

Selected links:

• Computing, general

November 2010

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