Thursday, October 4, 2007

Outsourcing to India & Legal Aspects

Outsourcing has brought a revolution in the field of IT sector. Today every company is thinking of going for offshore outsourcing. If yours company is the one then following tips will help you before or while entering in it:

1. Contracts can change so ensure companies defines a clear detailed set of rules for changing the contract during it life.

2. It is important to include lawyers in earlier stages of outsourcing. The relationship's structure & the fundamental terms that affect the parties' contractual rights are often settled early & not during the formal contract negotiations. This will help the organization to have a victorious contact.

3. Companies must be clear from the stage of planning initiation that the contracts can be terminated or extended as per the performance delivered to avoid disputes.

4. If the countries are not the same take the help of the local council before drafting or signing any contract. The local knowledge will prove extremely valuable.

5. Information transfers across borders can be tricky in some companies, so ensure you are aware of the legal position regarding outsourcing of your sensitive data.

6. Where the chosen Law is Indian Law and if Indian Jurisdiction is to be applied on any foreign country, ensure that the foreign country has a similar law as per Section 44A of the Indian Civil Procedure Code.

Offshore outsourcing to India is getting pace day by day. India has become the destination for outsourcing .Companies has to follow some legal rules while selecting India as its destination

1. When contracts are handled between two countries then the law of only one country is not sufficient to handle the whole contract. At that point of time, the rules of Private International Law comes into play. The best way solution for the two parties is to choose a particular law for the contract. This law is called the "Proper Law of the Contract".

2. According to law court of India, it’s not compulsory that India will always have the contract & jurisdiction. It’s the intention of the two parties which will decide which country will have the contract & which foreign court will handle the jurisdiction.