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There are three main types of outsourcing contracts that you may want to consider: fixed price, target cost contract, and time and materials contract.
15 things to include in your outsourcing agreement Description of services. The first thing your contract needs is a detailed description of the project and its scope. ... Service levels. ... Fees and payment. ... Contract duration. ... Transfer of assets. ... Representations, warranties, and liabilities. ... Indemnification. ... Product ownership.
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.
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.
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.