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The outsourcing agreement should also cover: The term. ... The outsourced services and level of service by the supplier. ... Pricing and charging. ... The transfer of employees. ... Asset transfers. ... Intellectual property rights. ... Data protection. ... Warranties and liability clauses.
The Services Description is the heart of the outsourcing contract. It must include all provided services. It must be seen as a multi-dimensional matrix including technical scope, service hours and service elements.
Outsourcing agreements must contain as much information about the project as possible to avoid possible misunderstandings and mutual accusations in the future. In addition, in the event of a breach of contract by either party, settlement and compensation conditions must be defined.
The outsourcing due diligence process should always include a check on the legal agreements and contract obligations like: Licenses required for services of outsourcing IT services. Complying with the applicable law within the country. Clearing out the payment schedule & requirement for any customization.