Drafting Outsourcing Agreements

On August 19, 2011, in Outsourcing, by Business Development Group

With the high number of business establishments around the world jumping to the outsourcing or offshoring advantage, the key to its success is its groundwork.  A specific, binding and defined document  – the written outsourcing agreement. The whole measurement of outsourcing is delivering results. With the high number of business establishments around the world jumping to the outsourcing or offshoring advantage, the key to its success is its groundwork. A specific, binding and defined document – the written outsourcing agreement.

In drafting outsourcing agreements, there are certain provisions that must be included. Although contract law varies from state to state, even countries – the general directives governing outsourcing agreements for as long as it is written in english, are substantially universal.

1. Indicate the name of the parties in the outsourcing agreement at the start of the contract. Include the address of each party concerned and where communications regarding the outsourcing agreement will be sent out.

                   (Read related article: Outsourcing Services Made Our Client Earn 15M)

2. Specify and identify the basic tasks delegated to the outsourcing provider.

                   (Read related article: Outsourcing Destination)

3. Duration. The outsourcing agreement should also include the specific implementation time frame.

                (Read related article: Outsourcing Not a Best Kept Secret Anymore)

4. Establish the proper procedure if in case the outsourcing agreement is to be terminated. Say for example, an agreement is terminated if a party provides 30 days advance notice.

                    (Read related article: Outsourcing Not a Best Kept Secret Anymore)

5. Ideally, it is best to define clauses in the outsourcing agreement of high standards of terms and conditions of employment. Recognizing ethics and internationally recognised guidelines from the International Labour Organisation and the United Nations Declaration of Human Rights such as;

-Working conditions are safe and healthy.

-Child labour is not permitted.

-Living wages are paid.

-No discrimination is practiced.

Quick test – 6 questions. 2 minutes of your time

ready to outsource assessment resized 600

If you are one of the many organizations who are seriously considering outsourcing any of your business processes as a strategic move to increase efficiency while reducing costs, you are right on track.

7 Responses to “Drafting Outsourcing Agreements”

  1. [...]            Read related article:Drafting Outsourcing Agreements [...]

  2. BPo guy says:

    Sorry to interrupt, but since I was redirected to this site, just have to ask: do you think I should outsource my services to some BPO company? been having trouble with expenses lately and American companies charge too much than I could handle.

    • Northern Worx KPO says:

      We, at Northern Worx appreciates your shared interest in outsourcing. We would like to introduce you to our programs that can potentially drive more value and efficiency to your efforts. Would you be available for a 30 minute conversation on your most convenient time and date, we would be happy to discuss the matter further on how we could support you? Looking forward to hearing from you.

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