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Outsourcing News : Article

OUT-LAW NewsForeign deals can be dangerous in shrinking outsourcing market

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

Separate research from market analysis firm IDC has found that the outsourcing market in western Europe is shrinking, with just $40.5 billion spent last year as opposed to $42.1bn in 2004.

Any deals abroad need to be carefully monitored, said Gartner. "Many organisations that are looking to establish global outsourcing contracts with foreign providers mistakenly believe that the terms and conditions are about the same as onshore contracts with in-country service providers," wrote Gartner analyst Helen Huntley in the report. "Outsourcing contracts structured with in-country providers will not work as templates for global outsourcing without significant modification."

Read entire article on OUT-LAW.com

Posted: Thursday, June 29, 2006

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