Madaan & Co.
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Outsourcing Successfully for Companies Outsourcing to India and other countries

Contact us for setting up outsourcing to India in all areas

Madaan & Co.
Attorneys at law
E-mail:  click here
Fax: (216) 928-9537

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Outsourcing Agreements

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Outsourcing to India

Outsourcing Successfully

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Outsourcing Successfully




Outsourcing is the contracting out of a company's non-core, non-revenue producing activities to specialists. It differs from contracting in that outsourcing is a strategic management tool that involves the restructuring of an organization around what it does best - its core competencies.

Two common types of outsourcing are Information Technology (IT) outsourcing and Business Process Outsourcing (BPO). BPO includes outsourcing related to accounting, human resources, benefits, payroll, and finance functions and activities. Knowledge Process outsourcing (KPO) includes outsourcing related to legal, paralegal, and other highly skilled activities.
For more information on how to Draft Outsourcing Agreements click here

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Checklist for a Successful Outsourcing

  How can internal processes be improved?
    Identify non-productive processes and the time that is spent on these activities. Could this time be directed into other more profitable areas of your business?
    What will be achieved by outsourcing?
    How will outsourcing affect the performance of the business in practical terms?
    Are the cost benefits both long-term and short-term?
    How does outsourcing compare using internal resources (taking into consideration factors such as employee-related costs, technology, training and administrative support).
    What risks are increased and what risks are decreased?
    Will important information still be at management's fingertips? Will outsourcing improve disaster-recovery capabilities?
    What impact will outsourcing have on internal resources?
  •.   Will employees' duties change? How will existing resources be redirected?
    What will the financial arrangements be?
    How is the fee structured? What does it cover?

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Types of Outsourcing Arrangements

Outsourcing arranges may range from sub-contracting to joint ventures to co-opetition and a long range in between. It depends on the needs of a company to see what kind of arrangement bests suits it. An outsourcing consultant can walk you through various options and help you set up optimal outsourcing for your company in a cost-effective manner. For more information on how to Draft Outsourcing Agreements click here

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Outsourcing Procedures & Steps

We provide outsourcing solutions through the following Process:

  • Situation Analysis - Analyzing the company's requirements and identifying the "outsourceable" components.

  • Outsourcing Options & Planning - Analyzing various options ranging from sub-contracting to co-opetiton and planning outsourcing model which is most appropriate in the circumstances.

  • Contracts & Agreements - Drafting all the outsourcing contracts.

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How to Draft an Outsourcing Agreement, BPO Agreement, KPO Agreement?

Offshore outsourcing is a legal minefield and many companies are not aware of the problems it causes. Of the 18 areas in a standard contract 15 need to be changed if the outsourcing provider is abroad. 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.

S uccess in outsourcing can be expected when Outsourcing Agreements, Service Level Agreements & Contracts are set up right and the parties know their duties well.  Lawyers who understanding the work culture and legal environment of both the jurisdictions should be involved in drafting Outsourcing Agreements.

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

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Setting up Outsourcing operations

Madaan & Co. has helped US companies in setting up there outsourcing operations in India and other countries - subsidiary as well as third party outsourcing. We can help you in setting up outsourcing to India and other countries. We have also helped US law firms in handling their outsourcing contracts and agreements. We can help your law firm or company in setting up outsourcing to India and other countries. Contact us for setting up outsourcing operation in India and other countries

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Madaan & Co.
Attorneys at law and Advocates
E-mail:  click here
Fax: +1 (216) 928-9537
(a US area code)

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