Global Outsourcing Legal Issues

Jolly industries reports in a press release that the theft of its intellectual property and its problems dealing with the Indian legal system exposes the risks of global IT outsourcing.

These are but two of the many legal issues and pitfalls attendant upon global IT outsourcing as pointed out in articles by Jason Epstein and Wendy Fink

As Mr. Epstein states: "Companies looking to save money, gain technology expertise, or simply shift liability have increasingly turned to outsourcing. Outsourcing takes many forms, ranging from outsourcing a discrete business function, such as software development or records management, to the entire IT department. Whatever the form, there are certain common legal issues associated with technology outsourcing."

I believe that some of the key issues may be grouped as follows:

Intellectual Property -- ownership, licensing, confidentiality, control, protection

Process Management -- description and scope of services, performance specifications, control, quality, change orders, transfer of assets, transfer of personnel, dispute resolution, security, disaster recovery, termination rights and duties

Other -- privacy, liability limits, warranties, remedies for breach, exclusivity, enforcement, particularly as the foregoing relate to foreign jurisdictions