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Outsourcing lawyers: Funding and Settling a Dispute

In today’s business landscape, outsourcing has become a prevalent business process for companies looking to optimise their operations, reduce costs, and gain a competitive edge. Outsourcing involves the delegation of specific tasks or business functions to external service providers, often located in different countries.

Whilst outsourcing can offer numerous benefits, such as access to specialised expertise and increased efficiency, it is not without its challenges. Outsourcing disputes can arise due to a variety of factors. These disputes can disrupt operations, strain business relationships, and result in financial losses for all parties involved.

outsourcing lawyers

At Annecto Legal, we can put you in touch with the right outsourcing lawyers to assist with your case. We can also regularly advise you on your legal funding options. Unfortunately, because of the high costs of legal actions in the UK, we only assist in disputes which are valued at over £250,000, at the absolute minimum. We would like to be able to help on other claims, but we just don’t have access to any products that can assist on smaller matters.

What are outsourcing disputes?

Outsourcing disputes refer to conflicts or disagreements that arise between companies and their outsourced service providers during the course of their outsourcing contractual relationship. These disputes can stem from various issues related to outsourcing transactions and can have wide-ranging implications for both parties involved.

Some common types of outsourcing disputes include:

  • Contractual disputes
  • Service delivery issues
  • Intellectual property (IP) disputes
  • Data security and privacy breaches
  • Cultural and communication challenges

Outsourcing disputes can have a significant impact on both parties. Resolving these disputes requires careful management, effective communication, and often, the involvement of legal professionals or alternative dispute resolution mechanisms such as mediation or arbitration.

What is the role of an outsourcing lawyer?

The role of an outsourcing lawyer is crucial in navigating the legal complexities and mitigating the risks associated with outsourcing arrangements. Their primary role is to provide legal advice, guidance, and representation to companies engaged in outsourcing activities. Some of the key functions and responsibilities of an outsourcing lawyer include:

Outsourcing contract drafting and negotiation: Outsourcing lawyers play a pivotal role in drafting and negotiating outsourcing agreements.

Risk assessment and mitigation: Outsourcing lawyers conduct thorough due diligence on service providers to assess their capabilities, reputation, financial stability, and compliance with legal and regulatory frameworks.

Compliance and regulatory guidance: Outsourcing lawyers stay abreast of relevant laws, regulations, and industry standards related to outsourcing.

Dispute resolution: In the event of outsourcing disputes, solicitors specialising in outsourcing are instrumental in resolving conflicts.

Ongoing legal support: Throughout the outsourcing relationship, outsourcing lawyers provide ongoing legal support and advice.

Funding an outsourcing dispute

If you are pursuing an outsourcing dispute claim, you should consider all legal costs involved. It is important that you are aware of the legal funding options that are available to you. Listed below are some of the options for funding an outsourcing dispute claim.

  • Conditional fee agreements – Conditional fee agreements (CFAs), also known as ‘no win, no fee agreements’, are a type of funding arrangement that allows individuals to pursue a claim without paying legal fees upfront. Under a no win no fee basis, the law firm agrees to take on the case and only charges a fee if the case is successful. If the case is unsuccessful, the client does not have to pay these legal fees.
  •  Contingency fee agreement – Some outsourcing dispute solicitors may offer to take on an outsourcing dispute claim on a contingency fee basis. This means that they will only charge a fee if they are successful in securing a financial settlement or damages. The fee payable to the solicitor is usually a percentage of the amount recovered, and if the case is unsuccessful, the law firm will not charge a fee.
  • After the event insurance – After the event (ATE) insurance is a type of insurance that can provide cover for legal costs in the event that a case is unsuccessful. This option can be particularly useful in cases where the outcome is uncertain, and the costs of losing a case could be significant. ATE insurance is often used with conditional fee agreements and contingency fee agreements.
  • Third party litigation funding – In some cases, third party litigation funders may be willing to provide funding for an outsourcing dispute claim in exchange for a percentage of any financial settlement or damages awarded. This option can be attractive for individuals who cannot afford to pay for legal fees themselves but have a strong case. ATE insurance is often used in conjunction with this type of funding.

How can Annecto Legal assist?

At Annecto Legal, we assist a range of clients in finding the right legal representation for their outsourcing disputes. We also ensure the appropriate litigation funding and insurance is put in place to ensure there are no financial barriers.

If you are in the process of pursuing or defending an outsourcing dispute and want to find out whether you’ve got a claim, then contact Annecto Legal now. We can help find you the right representation, as well as managing your financial risks and sourcing funding for your legal fees.

Get in touch

* Annecto Legal can only assist on case where the loss is in excess of £100,000, with the exception of data breach claims. If you need assistance on a claim worth over £100,000, please get in touch using our form or the details below:

Registered Office

Annecto Legal Ltd, 106 Kennedy Building, Murray Street, Manchester , M4 6HS

London Office

71 Central Street, London, EC1V 8AB


0800 612 6587


Contact us directly