Outsource India Inc. - The Legality of Things

m-link">them by reason of its closest and most real
What I like to call ‘Outsource India Inc.’ (theconnection” The Indian courts do accept this
Indian BPO sector) is booming. Opportunities are“choice”. Whatever Law you choose, be it Indian
aplenty. To use those opportunities effectively,or otherwise, it will be respected by the Indian system.
know-how of the legal system is essential. Before youIn the event of a reciprocal arrangement between India
take that potentially profitable plunge into the businessand a foreign country, the foreign countries law and
of offshore business outsourcing to India or what I likeruling would be enacted.( Reciprocal Arrangement:
to call Outsource India Inc., I recommend that youAgreement in which one party will perform a certain
consider the legal nature of Indian business. Not doingact if the other performs a specified act as well.) No
so could be disastrous. The fact that the law bookssuit need be filed. But if there is no reciprocal
are being rewritten in India, owing to the sea change inarrangement a suit may be filed on the other
international laws, doesn’t help matters. Thiscountry’s ruling. In summation, the parties have
article strives to give you an objective view of thisfreedom of choice of the Law which is to rule the
type of Law so as to better your efficiency incontract. The parties’ want will decide the Law
conducting business with Outsource India Inc. table or isthat governs the contract. Remember this! Consider
simply in drafting a BPO contract. The basis of anythe following before you go into an international
agreement regarding the BPO sector is of course, thecontract: • Express or imply the choice of law. • If
contract. So what are the laws regarding what anythe contract is signed in a country other than the
firm that wishes to go BPO wants to know:country whose law is applied, the formalities of that
International contracts? Any contract that passesplace will apply. • The Law system you chose must
boundaries of country is, at that point not within theallow for the “Proper Law of the Contract” • If
grasp of either nation’s laws. In this case theIndian law is to be enforced on foreign soil ensure that
“Private International Law” comes into play.the country has a similar Law to the Indian Civil
Therefore a particular country’s law must beProcedure Code Section 44A. With these factors and
chosen. Making sure of the use of a particular legallaws in mind, outsourcing to India, formulating contracts
system is done by choosing what is known as,et al should be a cakewalk. You can now use the
“Proper Law of the Contract”. The books sayfeatures of Outsource India Inc. and the Indian legal
that, “Proper Law is the law which the parties havesystem profitable to your advantage. Otherwise
expressly or impliedly chosen, or which is imputed todealing with such legal issues can be hell.