Outsourcing to India - A Legal Handbook

von: Bharat Vagadia

Springer-Verlag, 2007

ISBN: 9783540722205 , 208 Seiten

Format: PDF, OL

Kopierschutz: Wasserzeichen

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Outsourcing to India - A Legal Handbook


 

Foreword

6

Table of contents

10

1. Background and snapshot of key issues

17

1.1 Context

17

1.2 Background

17

2. Outsourcing fundamentals

30

2.1 Purported benefits

30

2.2 Costs and risks of outsourcing

31

2.3 Outsourcing models

32

2.4 Typical outsourcing arrangements

33

2.5 Separation of assets and operations

34

3. Attitudes to outsourcing worldwide

38

4. Selecting an outsourcing service provider

40

4.1 Minimising risks through the choice of an appropriate service provider

40

4.2 Service provider challenges from a customer perspective

43

4.3 The RFP process

44

5. The Indian judicial system

48

5.1 Primary source of law

48

5.2 Secondary source of law

49

5.3 Tribunals

50

6. Critical contract considerations ā€“ jurisdiction issues

52

6.1 Two systems of law

52

6.2 European legal landscape (common law vā€™s civil law)

52

6.3 Indian contract law

54

6.4 Jurisdiction to prescribe

57

6.5 Jurisdiction to adjudicate

57

6.6 Jurisdiction to enforce

58

6.7 Arbitration

61

6.8 Public policy and refusal to enforce foreign judgments / awards

65

7. Allocation of risk into the contract

69

7.1 Types of risks and terms within a contract

69

7.2 Terms of a contract

72

7.3 Disclaimers

76

7.4 Subcontracting provisions

77

7.5 Privity of contract

77

7.6 Insurance requirements

78

7.7 Force Majeure provisions

78

7.8 Disaster recovery

80

8. Project management

82

8.1 Elements of good project management

82

9. Contract discharge and methods to reduce liability

85

9.1 Contract performance

85

9.2 Representations and warranties

87

9.3 Indemnities

88

9.4 Limiting liability

90

9.5 European Unfair Contract Terms

90

10. Pricing

93

10.1 Types of pricing schema

93

11. Transition-in and change control

97

11.1 Transition-in

97

11.2 Change control

98

11.3 Mergers

98

12. Scope of services to be outsourced

100

12.1 Scope of the services contracted

100

13. Service Level Agreements

104

13.1 Type of Service Level Agreements

104

13.2 Performance standards

105

13.3 Process and Quality standards

106

13.4 Rules for effective SLAs

107

13.5 Selecting appropriate metrics

108

13.6 Measurement and management

109

13.7 Benchmarking

111

13.8 Remedies as part of the SLA

112

14. Contract enforcement

115

14.1 Typical remedies for failures to perform obligations

115

14.2 Damages available in India

117

15. Contract termination procedures

120

15.1 The outsourcing lifecycle

120

15.2 Triggers for termination

120

15.3 Effects of termination or expiration / reversion clauses

121

15.4 Dispute resolution mechanisms

123

15.5 Escalation procedures

123

16. Unenforceable contract terms under Indian legal system

125

16.1 Sovereignty

125

16.2 Indian statutes cannot be overwritten by any other law

125

16.3 Non-predation clauses

126

17. The EU Data Protection Directive 97/66/EC and related issues

128

17.1 The requirement for data protection

128

17.2 Non disclosure agreements / confidentiality

128

17.3 Personal data protection ā€“ the eighth principle

129

17.4 Data transfer in the interests of the data subject

137

17.5 The Seventh Principle

138

17.6 The situation in India with respect to data protection

140

18. Intellectual property rights (IPR)

144

18.1 Intellectual property rights is an integral part of the outsourcing agreement

144

18.2 Copyright

148

18.3 The Indian Copyright Act

148

18.4 Trade Marks

150

19. Transferring employees as part of the outsourcing agreement

153

19.1 Concept of Acquired Rights

153

19.2 When does the Acquired Rights Directive and TUPE apply to outsourcing?

154

19.3 Asset based activities

155

19.4 Employment transfers

155

19.5 What obligations and rights pass to the transferor?

156

19.6 Negotiating the contract in respect of transfer of employees

156

20. Legal and regulatory risks

158

20.1 Categorising legal and regulatory risks

158

20.2 Planning for change

158

20.3 Markets in Financial Instruments Directive (MiFID)

159

21. Specific Indian legal issues of importance

161

21.1 Taxation issues

161

21.2 Employment laws

163

22. Summary

167

Afterword - the future of outsourcing to India

171

Annex

173

1. Sample contract template - Checklist

174

2. Sample contract template - Section 1: Framework contract for outsourcing

175

2.1 Background

175

2.2 Definitions

175

2.3 Contract management

175

2.4 Law and place of jurisdiction

180

2.5 Transition- in

180

2.7 Conflict resolution

183

2.8 Rights and obligations

184

2.9 Confidentiality

186

2.10 Data and protection

186

2.11 Auditing and security requirements

188

2.12 Pricing / payment procedure

191

2.13 Indemnities

193

2.14 Damage limitations

194

2.15 Third party access

195

2.16 Subcontracting

195

2.17 Insurance

196

2.18 Taxes

197

2.19 Force Majeure

197

3. Sample contract template - Section 2: Description of services to be outsourced

199

3.1 Definitions

199

3.2 Description of the service

199

3.3 Service level agreement

200

4. Sample contract template ā€“ schedules

201

References and resources

203

Statutes and international conventions

203

Case law

204

Textbooks

206

Articles

207

Documents

208