Legal Issues in Outsourcing

Filed in archive Outsourcing Issues on November 29, 2006

Every outsourcing deal should be done in a legal and concise manner thus allowing both parties to protect their interest and at the same time maximize the benefits in every outsourcing deal.

Companies should know the different legal issues when signing an outsourcing deal so that their rights are protected in the said deal. Here are some of the legal issues which companies should know:

-status and legal relationship of the participants;
-scope of services provided and required outcomes;
-performance guarantees such as KPIs and service level requirements or uptime requirements;
-payment structures
-licensing and sublicensing of ICT and other technologies
-ownership of and rights to use intellectual property
-risk management issues such as limitation of liability, indemnities, warranties and insurance
-Regulatory controls and impact of competition laws
-privacy, confidentiality spam and the use of information
-employment law
-occupational health and safety.

Legal issues are not limited by the ones included in the list. Feel free to add your own in order to ensure the safety and legality of your outsourcing deals.