There are many ways to structure a country-by-country outsourcing relationship. The most common approach is to have a framework agreement between the two main entities and local agreements between the local units of the two organizations. The terms of the framework agreement are paid to local businesses, unless they have been amended in the local agreement. The local agreement takes into account all specific local needs (which may include specific local laws or unique service requirements for local institutions). The advantage of this structure is that it can avoid the need to renegotiate all legal conditions in different regions and ensure consistency. In addition, the customer may also be able to use the quantity discount, while the supplier can benefit from economies of scale. The downside of this approach is that it can be seen by local businesses as having to accept pre-negotiated terms. Depending on the particular circumstances, there may also be concerns about the rules regarding cartels and abuse of dominance in the client`s ability to impose obligations on his or her related businesses. It is important to remember this, even if we use the framework agreement in multi-country outsourcing cases, a size is not suitable for everyone and there are too many local variations to be ignored. Multi-country outsourcing means that the customer`s suppliers are committed to providing outsourcing services to its affiliates in different jurisdictions.
Structuring and negotiating a long-term outsourcing relationship requires parties to effectively manage many risks. Multi-country outsourcing presents several challenges. When an organization is considering a major trade agreement or outsourcing agreement covering global operations on multiple service sites, subsidiaries or related companies, it should consider the potential benefits and pitfalls when a single global agreement is used in relation to local (or “location-specific”) agreements to drive the transaction. E. The performance of this distribution agreement by the company and the performance by the company of its obligations and obligations under this agreement are not contrary to an agreement to which the entity is a party or to which it is bound by other commitments and, for example, to the full agreement.B. This agreement contains the entire agreement between the parties with respect to the proposed transactions and replaces all previous written and oral agreements as well as all concurrent oral agreements relating to these transactions. A single comprehensive agreement is an effective approach for a number of reasons: although the parties negotiated the terms under the framework agreement, work at the local level is far from complete. In addition to the usual local requirements, such as labour law requirements. B dispute resolution or existing legislation (for example. B, when services are provided in both general legal and civil legal systems, there are other issues that need to be addressed in the preparation of local agreements. For example, there has been an increased emphasis on all privacy and security issues in any outsourcing relationship. There has been no consistent approach to dealing with these issues.
Depending on the nature of the data and the legislation, some data may not flow freely between different countries. Parties must verify local requirements and address local differences in privacy, security, data protection and cross-border data flows. If the client works in a highly regulated environment, local regulatory requirements must also be verified.