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Outsourcing News : Article

Contract flaws increase offshore outsourcing risk

IP rights, legal jurisdiction, security and auditing all key, warns Gartner

Businesses are increasing the risk of offshore outsourcing disaster by failing to draw up tighter contracts when dealing with overseas service providers, according to analyst Gartner.

Out of the 18 key areas in a standard outsourcing contract - or master services agreement - Gartner has identified 15 that need significant review and modification when going offshore.

The most critical areas that need specially adapting for offshore outsourcing contracts include proprietary rights, security and confidentiality, legal compliance, fees and payment terms, and auditing.

Read entire article on silicon.com

Posted: Friday, June 23, 2006

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