Indiana Checklist for Outsourcing Agreements
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FAQ
Below, we take a closer look at the three elements that comprise human rights due diligence ? identify and assess, prevent and mitigate and account ?, quoting from the Guiding Principles.
An outsource agreement, sometimes called a commercial outsourcing services agreement, is a legal contract between a company and the contracted service provider they hire to perform services on their behalf.
An outsourcing agreement is a contract made between the company and service provider where the provider has vowed to provide definite services. E.g. sorting the data by the outsourcing service provider by employing its own manpower and resources by working from their very own venue.
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.
What is due diligence in outsourcing? Due diligence refers to the process of investigating the reliability of an outsourced service provider. It includes the risks associated with entrusting your business functions to them.
During due diligence, you may repeat a number of steps if new information comes to light: Analysis of the purpose of the project (i.e., if the deal still meets business goals) Analysis of the financial business case. Review of key documents. Risk analysis. Analysis of offer price (which may be tweaked based on discovery)
There are many possible examples of due diligence. Some common examples include investigating the financials of a company before making an investment, researching a person's background before hiring them, or reviewing environmental impact reports before committing to a construction project.
