Tech & Sourcing @ Morgan Lewis

Business process outsourcing (BPO) transactions are on the rise, with bullish forecasts from industry analysts including a projected revenue annual growth rate (CAGR 2023–2027) for the global BPO market of 6.48%, reaching a market volume of $450 billion by 2027 and global revenue exceeding $500 billion by 2030, and the North American market alone projected to achieve 8.9% CAGR 2023–2030.

The recent rise in popularity of generative AI–powered applications such as ChatGPT poses important copyright issues for individuals and businesses with respect to content creation, including the scope of rights with respect to commercial use, content publication, potential liability for infringement, and content enforcement.

The UK government published its first National Quantum Strategy (the Strategy) on March 15, setting out £2.5 billion (over $3 billion) in funding quantum research and naming a quantum computing industry as a strategic priority for the United Kingdom. The following day, the science and technology committee of the UK House of Commons (the Committee) announced a new inquiry on turning quantum technologies into commercial products. As quantum-focused startups proliferate, UK policymakers are demonstrating their intent to enable early-mover advantages in the sector.

Please join us on April 12, 2023 at 12:00–1:00 pm ET as Morgan Lewis partners Vito Petretti and Anastasia Dergacheva and of counsel Eric J. Pennesi discuss key topics for customers to evaluate when acquiring new technology solutions or expanding technology offerings within their current environments.

The UK government published a white paper on March 29 setting out a “pro-innovation” UK regulatory framework for artificial intelligence (AI). The framework centers upon five cross-sectoral principles, of which implementation will be context-specific to the use of AI, rather than the technology itself. The government does not propose introducing a new regulator or any new legal requirements on businesses, instead leveraging existing powers of UK regulators and their domain-specific expertise.

Although the metaverse as a retail market is a relatively new idea, both established and emerging fashion brands are trying to make the most of this new way of engaging with customers. Combining aspects of virtual reality, augmented reality, and mixed reality, the metaverse allows businesses to connect directly with consumers and to conduct business on a new global, digital platform.

With record sales topping $544 billion in 2022 and no sign of descent in sight, the public cloud and related services continue to soar to new heights.

The decision to terminate an agreement cannot be taken lightly. In exercising the option, understanding the key terms of the agreement and necessary steps to effectuate the termination are critical. As we have previously highlighted in past Contract Corners, termination provisions may include a variety of mechanisms built into them and one cannot assume that all termination provisions require the same steps to be taken. When considering a termination, a party must take the time to assess the actual termination rights under the agreement, what, if any, notice period will apply, and whether the termination will result in any payment or other obligations.

Please join us on Wednesday, February 8, 2023, at 12:00 pm–1:00 pm ET, as Morgan Lewis partner Peter Watt-Morse and associates Katherine O’Keefe and James Mulligan discuss issues unique to Anything as a Service (XaaS) agreements and important factors for service providers and their customers to consider.

As we reach the end of the year 2022, we have once again compiled all the links to our Contract Corner blog posts, a regular feature of Tech & Sourcing @ Morgan Lewis. In these posts, members of our global technology, outsourcing, and commercial transactions practice highlight particular contract provisions, review the issues, and propose negotiating and drafting tips.