Outsourcing to India
WHY
OUTSOURCE TO INDIA
DRAFTING OUTSOURCING AGREEMENTS
SETTING
UP OUTSOURCING IN INDIA
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Outsource to India
has become very popular destination for outsourcing because of quality, technological
agility, flexibility, cost control, time-to-market and
competitive advantage.
1. India is a talent-rich country
2. India exports software
to 95 countries around the world
3. India enjoys the confidence
of global corporations
-
82% of the US companies
ranked India as their first choice for software
outsourcing
-
Bill Clinton applauds
India's brainpower: says Indian-Americans run
more than 750 companies in America's Silicon
Valley. "You liberated your markets and now
you have one of the 10 fastest growing economies
in the world," said President Clinton.
-
Bill Gates says India is an
IT superpower: strikes strategic alliances with
Wipro and Infosys to develop applications on the
.Net platform
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Jack Welch opens $130
million Technology Center in Bangalore, GE's
largest R&D center outside the US: celebrates
10 years of GE Medical Systems in India
4. India Offers Multiple
Advantages
-
Outsource to stay
competitive. Leading companies worldwide realize
that to maintain stay ahead, they need to reduce
costs, provide the best quality, use the latest
high-tech skills, and be reliable and innovative
-
Outsource to a mature
industry with world-class systems, systems and
quality
-
Of the 23 software
companies in the world that have achieved the
prestigious SEI-CMM Level 5, 15 of them are
Indian. India will soon have the highest
number of ISO-9000 software companies in the
world, according to Nasscom.
5. India has state-of-the-art
technologies for total solutions: outsource turnkey
projects
Offshore assignments have moved
up the value chain - from data entry to large and complex
turnkey projects of 200 to 300 person years.
Applications include:
6. IT is a major thrust area
for the Government of India
-
IT is one of the Government
of India's top five priorities.
-
The National IT Task Force
submitted its 108 point Action Plan to promote IT
in the country. The Government of India has
approved the plan and is in the process of
implementing it.
-
A separate Ministry of
Information Technology was set up to expedite
swift approval and implementation of IT projects
and to streamline the regulatory process.
-
Information Technology Act
2000: The Information Technology Bill that was
passed in the Indian Parliament in May 2000, has
now been notified as the IT Act 2000. The IT Bill
brings E-commerce within the purview of law and
accords stringent punishments to "cyber
criminals". With this, India joins a select
band of 12 nations that have cyber laws.
Software Technology Parks of
India offer world-class infrastructure and various
incentives and concessions to encourage foreign
investment and promote software development in India e.g.,
100% Foreign equity is permitted and approved under the
Automatic Route delegated powers to The Director STPI,
tax holiday until 2010, etc.
7. India has a stable
government and is one of the world's 10 fastest-growing
economies
-
Fifty years of democracy
-
Indian service sector
contributes a massive 51 per cent to India's
GDP. Within this category, the most promising is
computer software export, which grew at an
amazing rate of 40-50 per cent every year during
the 1990s.
-
Excellent investment
potential: India ranked third in Asia, just after
Japan and China, in terms of investment potential
for the next 10-year period in a study by the
Export-Import bank of Japan.
-
Privatization of the
infrastructure sector
-
A convergent network is
being created by the intertwining of the ISP,
Telecom, VSAT, Cellular and networking sectors.
India's large business houses and Public Sector
Units are working towards creating greater
bandwidth availability.
How to Draft an Outsourcing
Agreement, BPO Agreement, KPO Agreement?
A good outsourcing
agreement is one which provides a comprehensive road map of the
duties and obligations of both the parties - outsourcer and
service provider. It minimizes complications when a dispute
arise. However, many a times people neglect to pay attention
while drafting an outsourcing agreement.
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A
properly drafted Outsourcing Agreement saves a lot of problems later on.
Lawyers who understanding the work culture and legal environment of both the
jurisdictions should be involved in drafting Outsourcing Agreements.
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Before
finalizing an outsourcing agreement, the terms
should be thoroughly discussed and negotiated to
avoid any misunderstanding at a later stage.
Lawyers from all applicable jurisdictions must be
consulted before finalizing any outsourcing agreement.
Before
signing an Outsourcing Agreement
the following must be properly addressed:
Duties and
obligations of Outsourcer
Duties and
obligations of service provider
Applicable law to
outsourcing agreement
Term of the
Agreement
Events of Defaults
and Addressing
Dispute Resolution
Mechanism them
Time limits
Location of
Arbitration
Number of
Arbitrators
Interim
measures/Provisional Remedies
Privacy
Agreement
Non-compete
Agreement
Confidentiality
Agreement
Rules Applicable
Appeal &
Enforcement
Be aware of local
peculiarities
Survival after Termination
of the main agreement.
Every outsourcing agreement should be
modified as applicable under different circumstances. One brush
should not paint all the painting.
For more information on how to Draft Outsourcing Agreements
click here
Setting up
Outsourcing Operations
We have helped USA
companies in setting up their outsourcing operations and
drafting and negotiating their outsourcing agreements. We have
also helped US law firms in handling their contracts and
agreements.
Click
here to Contact us
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