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E-raamat: Outsourcing to India - A Legal Handbook

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For the benefits offered by outsourcing and offshoring, organisations outsourcing to India must however recognise that there are real risks involved, and allocating such risk through a well constructed contract is a crucial step in minimizing such risk. As is the case with respect to any material agreement, the structure of an outsourcing agreement is important because it embodies the rights, remedies, duties and obligations of the parties and provides a blueprint for the parties' relationship.



When contracts transcend national boundaries, the national legal regime of any single country becomes inadequate. When the parties to the contract are located in different countries, at least two systems of law impinge upon the transaction and the rules of International Law come into play. Clauses however addressing certain issues can only be governed by Indian Law.



Specific legal factors around Data Processing, Intellectual Property and staffing implications (TUPE) must also be given careful consideration.

Arvustused

From the reviews:









"Outsourcing to India: A Legal Handbook is a welcome addition to the library of books on outsourcing to India. the book contains information useful to the attorney drafting instruments to be used between a service provider and an outsourcer, and information for the person working on the business side of the outsourcing relationship. This book is a solid resource for any professional new to outsourcing because it focuses only on relevant information and concerns both lawyers and business professionals alike." (International Law and Management Review, Vol. 4, 2008)

Background and snapshot of key issues
1(14)
Context
1(1)
Background
1(14)
Organisations outsource for a number of reasons
3(2)
Outsourcing trends
5(2)
India as an outsourcing destination
7(3)
Destination India
10(1)
An overview of outsourcing agreements
11(4)
Outsourcing fundamentals
15(8)
Purported benefits
15(1)
Costs and risks of outsourcing
16(1)
Outsourcing models
17(1)
Typical outsourcing arrangements
18(1)
Separation of assets and operations
19(4)
Transfer of assets
20(1)
Transfer of staff
21(1)
Service Agreement
22(1)
Attitudes to outsourcing worldwide
23(2)
Selecting an outsourcing service provider
25(8)
Minimising risks through the choice of an appropriate service provider
25(3)
Service provider challenges from a customer perspective
28(1)
The RFP process
29(4)
The Indian judicial system
33(4)
Primary source of law
33(1)
Secondary source of law
34(1)
Tribunals
35(2)
Customs
35(1)
Interpretation
35(2)
Critical contract considerations -- jurisdiction issues
37(18)
Two systems of law
37(1)
European legal landscape (Common Law v's Civil Law)
37(2)
Common law countries
38(1)
Civil law countries
38(1)
Indian contract law
39(3)
Jurisdiction to prescribe
42(1)
Jurisdiction to adjudicate
42(1)
Jurisdiction to enforce
43(3)
Nature and scope of section 13 of the Code of Civil Procedures, 1908
44(2)
Arbitration
46(4)
What is an arbitration agreement?
47(2)
Enforcement of foreign arbitral awards
49(1)
Public policy and refusal to enforce foreign judgments / awards
50(5)
How courts apply the public policy limitation in international arbitration
50(1)
Application of Indian law in English courts
51(4)
Allocation of risk into the contract
55(14)
Types of risks and terms within a contract
55(3)
Terms of a contract
58(4)
Defining terms
59(1)
Intermediate terms
59(1)
Implied terms
60(1)
Terms implied by custom
60(1)
Terms implied by the court
60(1)
Terms implied by statute
60(1)
Typical service provider requests
61(1)
Typical customer requests
61(1)
Disclaimers
62(1)
Subcontracting provisions
63(1)
Privity of contract
63(1)
Insurance requirements
64(1)
Force Majeure provisions
64(2)
Disaster Recovery
66(3)
Disaster recovery testing
67(1)
Provision of disaster recovery services
67(2)
Project management
69(4)
Elements of good project management
69(4)
Transition management
69(1)
Governance
70(1)
Performance and quality management
70(3)
Contract discharge and methods to reduce liability
73(8)
Contract performance
73(2)
Representations and warranties
75(1)
Consequential damages
75(1)
Limits on recovery of actual damages
76(1)
Indemnities
76(2)
Mutual indemnities
76(1)
Service provider indemnities
77(1)
Customer indemnities
77(1)
Limiting liability
78(1)
European Unfair Contract Terms
78(3)
The UK Unfair Contract Terms Act (UCTA) 1977
78(1)
Main provisions of UCTA 1977 relevant to outsourcing contracts
79(1)
Exemption of liability for negligence
79(1)
Exemption of liability for breach of contract
79(1)
Exemption of implied terms in contracts of sale
79(1)
The requirement of reasonableness
80(1)
Pricing
81(4)
Types of pricing schema
81(4)
Incentive pricing
82(1)
Payments
83(1)
Contracting for change
83(2)
Transition-in and change control
85(4)
Transition-in
85(1)
Change control
86(1)
Mergers
86(3)
Scope of services to be outsourced
89(4)
Scope of the services contracted
89(4)
General scope clauses
90(1)
Undisclosed assets
90(1)
Outsourced functions
90(1)
Administration
91(1)
Customer service
91(1)
Finance
91(1)
Human resources
92(1)
Information technology and information systems
92(1)
Real Estate
92(1)
Logistics
92(1)
Service Level Agreements
93(12)
Type of Service Level Agreements
93(1)
Performance standards
94(1)
Process and quality standards
95(1)
Rules for effective SLAs
96(1)
Selecting appropriate metrics
97(1)
Measurement and management
98(2)
Collecting process information
99(1)
Reporting
100(1)
Benchmarking
100(1)
Remedies as part of the SLA
101(4)
Contract enforcement
105(6)
Typical remedies for failures to perform obligations
105(2)
Basis for assessment of damages
106(1)
Duty to mitigate
107(1)
Liquidated damages and penalty clauses
107(1)
Damages available in India
107(4)
General damages
108(1)
Special damages
108(1)
Distinction between general and special damages in contract
108(1)
Exemplary damages
108(3)
Contract termination procedures
111(6)
The outsourcing lifecycle
111(1)
Triggers for termination
111(1)
Effects of termination or expiration / reversion clauses
112(2)
Transition-out services
113(1)
Dispute resolution mechanisms
114(1)
Escalation procedures
114(3)
Unenforceable Contract terms under Indian Legal system
117(4)
Sovereignty
117(1)
Indian statutes cannot be overwritten by any other Law
117(1)
Non-predation clauses
118(3)
The EU Data Protection Directive 97/66/EC and related issues
121(16)
The requirement for data protection
121(1)
Non disclosure agreements / confidentiality
121(1)
Personal data protection -- the eighth principle
122(8)
Concept of legal adequacy
126(2)
Binding corporate rules (BCR)
128(1)
Residual information
129(1)
Data transfer in the interests of the data subject
130(1)
The Seventh Principle
131(2)
The situation in India with respect to data protection
133(4)
Current legislation governing data privacy in India
134(3)
Intellectual property rights (IPR)
137(10)
Intellectual property rights is an integral part of the outsourcing agreement
137(4)
Copyright
141(1)
The Indian Copyright Act
141(2)
Trade Marks
143(4)
Comparative analysis of patent, copyright and trademark
144(1)
Domain names
145(1)
E-Commerce
145(2)
Transferring employees as part of the outsourcing agreement
147(6)
Concept of Acquired Rights
147(1)
When does the Acquired Rights Directive and TUPE apply to outsourcing?
148(1)
Asset based activities
149(1)
Employment transfers
149(1)
What obligations and rights pass to the transferor?
150(1)
Negotiating the contract in respect of transfer of employees
150(3)
Legal and regulatory risks
153(4)
Categorising legal and regulatory risks
153(1)
Planning for change
153(1)
Markets in Financial Instruments Directive (MiFID)
154(3)
Specific Indian legal issues of importance
157(6)
Taxation issues
157(2)
Employment laws
159(4)
Protection for workmen
160(1)
Confidentiality provisions in employment contracts
161(1)
Women's employment rights
162(1)
Summary
163(4)
Afterword - the future of outsourcing to India
167(2)
Annex
169(32)
Sample contract template - Checklist
171(2)
Sample contract template - Section 1: Framework contract for outsourcing
173(24)
Background
173(1)
Definitions
173(1)
Contract management
173(1)
Contract commencement and duration
174(1)
Contract renewal
175(1)
Contract modification (Change Order Process)
175(1)
Contract validity (merger, take-over, bankruptcy)
176(1)
Contract termination
176(1)
Important factors to include within the contract
177(1)
Acceptance procedures
178(1)
Law and place of jurisdiction
178(1)
Transition-in
178(1)
The transition plan
179(1)
Employees
179(1)
Transferring employees
179(1)
Transferred employees
180(1)
Seconded employees
180(1)
Independent contractor agreement
181(1)
Terminated employees
181(1)
Conflict resolution
181(1)
Escalation procedure
182(1)
Rights and obligations
182(1)
General and specific obligations and warranties
182(1)
Remedies for failures to perform obligations or meet standards
183(1)
Confidentiality
184(1)
Data and protection
184(2)
Auditing and security requirements
186(1)
Auditing
186(1)
Security
186(1)
Regulatory
186(1)
Cost of review
187(1)
Consequences of review
187(1)
Contingency planning for disaster
187(1)
Disaster recovery testing
188(1)
Proprietary rights
189(1)
Pricing / payment procedure
189(1)
Charging principles
190(1)
Indemnities
191(1)
Damage limitations
192(1)
Third party access
193(1)
Subcontracting
193(1)
Rights to assign
193(1)
Approval of sub-contractors
193(1)
Insurance
194(1)
Taxes
195(1)
Force Majeure
195(1)
Factors to constiture Force Majeure
196(1)
Effect of suspension of service
196(1)
Sample contract template - Section 2: Description of services to be outsourced
197(2)
Definitions
197(1)
Description of the service
197(1)
Service level agreement
198(1)
Sample Contract Template -- schedules
199(2)
References and Resources 201