The following TMT practice note Produced in partnership with Paul O’Hare, Partner and Kathryn Dooks, Partner of Kemp Little and Mike Cashman, Partner of Dorsey & Whitney LLP provides comprehensive and up to date legal information covering:
This Practice Note considers the following key issues specific to multinational or offshore outsourcing arrangements:
Payment and invoicing
Forum for resolving disputes
Corruption, slavery and ethical issues
For an outsourcing agreement suitable for use in international transactions, see Precedent: Outsourcing agreement—long form. See also Offshore IT outsourcing—training materials.
The growth in international outsourcing has been facilitated in recent years by suppliers having developed credible regional delivery centres that can deliver the outsourced services on a cross-border basis so as to meet local requirements. An international outsourcing transaction might comprise, at its simplest, a UK-based business contracting with a supplier in, say, India for the provision of back office services. At the other end of the scale, a global corporation may outsource certain functions to a supplier, or multiple suppliers, with delivery centres located in each jurisdiction in which the customer has a presence. There are many possible structural permutations but the underlying issues, including the potential risks and benefit, are largely the same.
This Practice Note explores the issues that are common to most forms of international outsourcing, with a particular focus on contractual offshoring.
The key risks and benefits of an offshore outsourcing transaction, from the perspective of the customer, are summarised below.
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