Over the past two decades, companies have increasingly made use of outsourcing. Often functions perceived as "non core" were outsourced to specialist providers, often located offshore, who then delivered the same services back to the company more cheaply. This was achieved by using cheaper labour, newer technology and by reusing infrastructure developed for other companies with similar requirements. In today's leaner times, outsourcing transactions will continue to be important given their potential cost reductions.

However, companies need to ensure compliance with European competition laws. For example, some types of outsourcing transaction may need to be notified under merger control rules, meaning that prior approval would be needed before the outsourcing can be put into effect. In other cases, contractual restrictions put in place to give the company a competitive advantage may themselves be anti-competitive and subject to challenge.

Competition law is, in the authors' views, seldom given the consideration it deserves by outsourcing practitioners. This article will endeavour to redress the balance.