Members of an enterprise’s board of directors have a duty to exercise their business judgment concerning the suitability of proposed corporate transactions, the management of service providers and the business’ supply chain, compliance with applicable law and creating an environment for compliance as well as maintaining competitiveness, quality and accountability. All these considerations apply to decisions relating to insourcing, outsourcing and business process management generally.

Directors need to be educated and sophisticated on these business and legal issues to fulfill their fiduciary duties (as well as manage the costs of insurance of directors and officers and of the company for errors and omissions.

The customer’s senior management team needs to coordinate the disparate risks and opportunities of an outsourcing venture. Senior executives have different roles. The roles of certain senior executives are critical to the success or failure of the proposed transaction. Click on the links below to view the various roles.