The BPO industry has flourished at a frantic pace in the last few years and companies have ended up with huge savings by being a part of the industry. By outsourcing their back office business processes to cheaper nations like China, India, Philippines, Mexico, South Africa etc companies can cut costs, better concentrate on their core businesses and strengths, ensure better customer satisfaction and in a way get an edge over their competitors. The different kinds of services offered by BPO's include Customer Support, Technical Support, Telemarketing, Insurance Processing, Data Processing, Internet / Online / Web Research and so on. The cheap labour costs and the pool of skilled, English-speaking Indians have always been the two foremost factors contributing to the BPO boom in India

Knight Blog Post

Before signing an Outsourcing Agreement the following must be properly addressed.

  • • Duties and obligations of Outsourcer
  • • Duties and obligations of service provider
  • • Security and confidentiality
  • • Legal compliance
  • • Fees and payment terms
  • • Proprietary rights
  • • Auditing rights
  • • Applicable law to outsourcing agreement
  • • Term of the Agreement
  • • Events of Defaults and Addressing
  • • Dispute Resolution Mechanism
  • • 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 terms after the termination of the outsourcing agreement.

The most important areas to protect through an international outsourcing agreement are security and confidentiality, legal compliance, fees and payment terms, proprietary rights, auditing rights and dispute resolution process.