Legal Issues In Outsourcing Simulation

Usually, suppliers cannot end the contract because of the extreme cost, risk and disruption resulting to the buyer. Basicly, suppliers may have the right to terminate the contract only due to the failure of the contracting party to pay the amounts owed to the supplier. When the parties have come to terms about the termination of the agreement the contracting company might want to take services or activities back-sourced, as well as, can enter into contract with another outsourcing company.
If there is a termination of the contractual relationship due to one of the alluded motives, there are rights that should be taken into account, such as, the contracting party need of information regarding the method of how the current services that are being supplied; a provision entailing the outsourcing company to assign important third …show more content…
The outsourcing company will handle with very sensitive information of his client, which might not deemed to be automatically covered by law. In order to avoid the disclosure of business information or confidential is important to contractually stipulate this matter or by non-disclosure agreement.
In addittion, provisions regarding disaster recovery are commonly ignored . Although, it is fundamental to preview disaster recovery and business continuity strategies in the outsourcing contract.
Last, but no least, there is an important behaviour that may help to overcome some of the outsourcing failures . In order to have an evolving and long term business relationship, a good and effective communication abilities inhabit simple problems from becoming complex ones. The effective communication may be done through formal and informal mechanism. Thus, becomes important to stipulate in the agreement a project manager, in order to handle and maintain, a continued relation with all the involved parties, on a daily basis management of the