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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.
Outsourcing is a business practice in which services or job functions are hired out to a third party on a contract or ongoing basis.
In short, an outsourcing contract is a legal document that goes over what work will be handled by the third-party, what expectations you have, what timelines should be achieved, and things of that nature. It basically protects your investment and also dictates how the third-party gets paid.
What should be included in an outsourcing agreement? 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.
There are three main types of outsourcing contracts that you may want to consider: fixed price, target cost contract, and time and materials contract.