Outsourcing? Get a contract
Filed in archive Best Practice on July 25, 2010
© kafka4prez
Outsourcing is still a smart way to manage business processes regardless of the frequent backlash that it gets in the media.
In order to make outsourcing successful, a contract should be in place that itemizes all the details and expectations. Since most outsourcing contracts are for periods of 5-10 years, the contract needs to be flexible to meet market challenges without jeopardizing.
• The contract should contain provisions to add or remove services, based on prevailing conditions.
• It should contain dispute mechanisms that both parties must adhere to.
• It should contain governance provisions and change management procedures.
An outsourcing contract isn't something that should be taken lightly. It is recommended that you get an legal specialist to help you draw up your contract.
© kafka4prez
Permalink: Outsourcing? Get a contract
Tags: outsourcing, contract, governance provisions, legal specialist, dispute mechanisms outsourcing outso
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Rating: 8.75 out of 4 vote(s) cast.
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Response from:
Ajeva
(07/27/10 4:34am)
Short piece of advice that's right on target. Thanks for reminding us once again about the value of a fine print. People hate legalese these days but when all things fail, at least, you have some kind of a safety net.
Response from:
suherli
(07/30/10 9:39pm)
Outsorcing IT is good idea, but we must calculate cost and benefit.
Response from:
Lucky Balaraman
(08/02/10 2:41am)
Many of the service provider countries have legal systems that can be easily influenced by local entities, a contract will often be creating a false sense of security.
Response from:
Charise
(08/16/10 7:31am)
There are many outsourcing companies that offer contracts that can be canceled within 30 days! I believe this keeps outsourcing companies focused on quality and excellent service.
Response from:
June Harris
(08/19/10 1:43am)
Perfect! There is Law & Lawyers on either side of the fence; with a contract in place there should not be any issues with outsourcing.
Response from:
Suman
(08/27/10 3:10am)
Outsourcing is good if you want to cut costs, but you should choose a good firm to outsource your projects to or you will just lose your money and time.
Response from:
Karen
(09/01/10 4:52am)
Outsourcing on its own has many benefits and every company should be very careful on screening their chosen outsourcing solution provider. A legal contract on both parties would be a very great help to reduce damages and trust issues.
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