Legal Structures Of Outsourcing

Various US business communities have realized andthe independent third party contractor which usually will
accepted the great opportunity of being able to slashhave its own infrastructure and manpower in the
down their operation costs by outsourcing part of theiroffshore country from where the service is executed.
works and processes to cheaper but good qualityStarting a subsidiary and acquisition etc must be done
labor countries. If you are a company in the US andlater. The initial advantages of letting a third party do all
want to outsource to India, China, the Philippines or anythe work will mean lower risk and freedom from all the
other Asian locations, what are the different optionshassles of startup costs and infrastructure
that are available? What are the different legaldevelopment.
structures that make offshore outsourcing possible?However some US based corporate do choose to
To get into outsourcing, there are three possible legalopen their own offshore subsidiary straight away so
structures that the outsourcing company can choosethat they can enjoy the advantage of better control
from;and get a better level of security for all sensitive data
- Sign a contract with a third party for getting theand intellectual property. However today most of the
servicesoutsourcing service providers located in the US has
- Start your own subsidiary in that country andrealized that the need of the day is to give clients the
contract for services with itassurance of a high level of security. It is equally
- Third party contracting with the intention of acquiring itimportant to consistently maintain a good level of
in the futureinteraction and communication with the clients
If one is just starting out on BPO (business processirrespective of their global locations.
outsourcing) for the first time, it is better to choose out