An outsourcing agreement is a very common contract in today’s world by which a particular operation or operations of a company is contracted out to another company, usually in another country. The two companies agree on some terms and conditions governing the agreement and refer to the services offered by one and payment received by another.
There are various advantages of an outsourcing agreement. It cuts down on the cost of providing those services by outsourcing the jobs to lower cost economies, the companies resources can be spent on core competencies, the quality can be improved by contracting out the specific operations to more talented workers and developing a product in shorter time. Besides giving the names of both the parties, the outsourcing agreement should specifically mention the tasks the outsourcing provider has to perform and the time period during which the agreement will be in effect. The conditions under which the contract will be terminated must also be mentioned.
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Sample Outsourcing Agreement
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