Contributed By Luther Rechtsanwaltsgesellschaft mbH (Cologne)
In a standard supplier customer model of outsourcing, a framework agreement is often agreed which is kept very general and regulates the basic rights and obligations of the parties, such as general principles for the provision of services and the obligation to co-operate in general, warranty, liability, contract and conflict management, and duration. In statements of work or service descriptions, the individual services and the phases/milestones of the outsourcings are specified in detail. Service level agreements with detailed key performance indicators are used to measure the quality of the service, and to ensure the quality, reliability and availability of the contractually agreed services.
The classic model of a service agreement with a remuneration based on unit prices (sometimes with some fixed components or minimum units to be paid by the customer in any case) still seems to be the standard model. However, the latest developments show an increasing use of the joint-venture model, in order to ensure the customer’s control and influence as well as transparency. As stated above, one major trend is the use of innovative remuneration models combining demand for increased productivity and continuous improvement on the one hand with a requirement for costs coverage and margin on the other.