If you are keen on cutting business costs without compromising on quality, outsourcing is one of the top options to consider. India is one of the most common choices as far as outsourcing various types of services are concerned. While this certainly makes great business sense, there are some issues pertaining offshore outsourcing to India and legal aspects that need to be considered. In this article, we are listing some important points you need to keep in mind before you start outsourcing.
Governance of International Contracts
Whenever there are any business contracts that go across national boundaries, the national laws of the country will not be sufficient to handle situations in case of conflicts and issues. It is important that when deals between Indian and US establishments are signed, the International laws come into play. The best way forward is to choose which country’s government will take care of the legal aspects of overseas deals. This is referred to as the Proper Law of Contract. This is a law that protects the interests of both parties in India and the US.
Intellectual Property Laws in India
The laws in every country always go through changes and modifications, and the same is the case with India. It should be kept in mind that India has ratified the World Trade Organization agreement that went into force from 1st January 1995. India is also a party to the provisions that are applicable under the agreement that is related to Intellectual Property Rights. Further, the country also has brought in many changes to their designs, copyrights, trademarks and patent related laws.
Overseas Parties Have Flexible Laws
|When it comes to offshore outsourcing to India, the stakeholders are at liberty to specify their terms of contract. They also can mention the law under which the particular outsourcing software contract should be governed. There are many sections of the Indian Civil Procedures Codes that govern the enforceability of foreign judgments when it happens in the US and other countries.
The Courts Also Uphold the Law That is Chosen
When the outsourcing to India is finalized and contracted under a specific law, the Indian courts have always recognized the selection of the law. The specific law may be something that is not practiced in India, but the courts have always taken a lenient view on this and judge based on the originally contracted law even if it belongs to the US.
When it comes to offshore outsourcing to India and legal aspects, know that there is a well-defined and efficient legal and judicial system. It is important for U.S business owners to understand the various legal aspects associated with outsourcing to India. Remember to follow the Proper Law of Contract, by defining what country’s laws will be followed in the original contract.