| Outsourcing is defined as the contracting out of a | | | | - Specific acceptance period |
| company's non core, non-revenue producing activities | | | | - Time period |
| to specialists. Before outsourcing the work the | | | | - Non compete agreement |
| outsource contract is an important document that has | | | | - Warranties |
| to be signed, as it is the legal basis of the outsourcing | | | | - Intellectual property issues |
| agreement. Almost every agreement will have | | | | - Confidentiality details |
| attached a "statement of work exhibit". This will differ | | | | - Jurisdiction/dispute details |
| depending on the type of services that are sought | | | | - Compliance with all regulations |
| after. | | | | An outsourcing partner is not an enemy but like a |
| Traditionally an outsourcing contract has these four | | | | friend looking for a win-win relationship. For the benefit |
| basic sections: | | | | of the relationship and a better future, ideally the |
| - Scope of the Services Agreement | | | | outsourcing contract may include various types of |
| - Deliverables | | | | clauses. There is a clause called the mandatory |
| - Terms and Conditions | | | | reference clause that mandates that the vendor use |
| - Service Level Agreements | | | | us as a reference at least a certain number of times a |
| So what are the major and minor aspects to be | | | | year. Then there is the bench marking clause that |
| mentioned while drafting out the agreement with a third | | | | demands that one be allowed to compare the |
| party outsourcing service provider? Here is a brief list | | | | outsourcer's costs with the average cost for the |
| of all important aspects that has to be included in the | | | | specific type of service on the open market. If the |
| outsourcing contract. | | | | provider charges higher than the prevailing market |
| - Description of the work | | | | price there has to be a negotiation for price reduction. |
| - Schedule of project meetings | | | | Other clauses include the right to re-sourcing or |
| - Provisional remedies | | | | in-sourcing the work without a termination fee. Another |
| - Proprietary rights | | | | clause guarantees a continuous improve of service |
| - Pricing/fee details | | | | levels year after year. |
| - Obligations of service provider | | | | |