• Minimizing Outsourcing Risk: Outsourcing Contracts
  • April 6, 2007 | Author: Steven J. Friedman
  • Law Firm: Littler Mendelson, A Professional Corporation - New York Office
  • Martindale-Hubbell posed the following question to provide a variety of views on this important topic:

     

    How can companies avoid common problems when drafting outsourcing contracts and agreements?

     

    The first rule is to carefully review the substance of the agreement. One of the most important provisions to review in the agreement is the provision containing the standard of care that the outsourcing entity owes to the client because of the obvious need for legal protection when something goes awry. Without clear language relating to responsibility for errors and omissions, jousting may occur over which party has responsibility for a problem, and it can be a huge  surprise to clients when the outsourcing entity doesn’t take immediate responsibility.