Article/news

BUSINESS PROCESS OUTSOURCING

With the globalization of commerce, Business Process Outsourcing ("BPO") is emerging as a key business opportunity in India. It has been proved that by outsourcing non-core business processes to service providers companies can focus on their core competencies and create value for their stakeholders. India is one of the jurisdictions, which provides high value in the form of skilled and comparatively cheap labour and good technology backend infrastructure making it a favored BPO destination.  

Increasing numbers of businesses and other institutions are turning to outsourcing to achieve mission critical objectives such as: (i) the reduction of costs and internal staffing commitments; (ii) the release of scarce capital to more productive uses; (iii) access to specialized expertise; and, in some cases, (iv) to establish or strengthen strategic business relationships. While the benefits of outsourcing are compelling, there are substantial risks associated with the transfer of business critical functions (such as the operation of a firm’s IT systems) to a third party service provider. It is vital that the structure of the deal and the principal agreements effectively address, manage and allocate the risks associated with the outsourcing, while providing the customer with the requisite level of flexibility. Law Firm has the expertise and the experience to assist businesses chart the outsourcing course wisely.

In the Indian context, BPO is synonymous with IT enabled services ("ITES"), whereby business processes and/or services are performed in India and delivered over communication networks, including the Internet worldwide.

Law Firm can assist businesses with all aspects of the outsourcing process, including:

Initial and Ongoing Due Diligence

Managing the Bidding Process

Consideration of Regulatory Issues  

Dealing with Existing Contractual Arrangements  

Employment and Labour Issues  solved  

The Impact of Tax Consequences solved  

Negotiating IT Outsourcing Agreements and Contracts  

Privacy Issues  

Intellectual Property Rights  

Limitation of Liability

Force Majeure solved  

Business Continuity Planning solved  

Integrating Acquisitions solved  

Termination and Transition  

Guiding our clients on the various laws and regulations relating to outsourcing BPO in India

Advising our clients on allied laws, rules, regulations and guidelines, such as permissibility of foreign investments, protecting of IPRs, issues arising in the context of the Information Technology Act, 2000

Assisting our clients in obtaining the relevant regulatory approvals in India.

Advising our clients on structuring their BPO operations in India, from a legal, regulatory and tax (both direct and indirect perspective.

Assisting our clients in complying with Indian transfer pricing regulations · Conducting due diligence exercises in case of acquisition of a target company in the BPO stratosphere

Advising on issues relating to data protection and privacy in India

Law Firm's advice is a comprehensive blend of business strategy, in-depth industry specific legal issues and global tax minimization.