Tips on LPO work contracts

[Camino_LPO]

Ensure that the contract you enter into is custom made for your
enterprise. You can customize a basic contract made by your lawyer
according to your needs and expectations.

Although each individual offshore contract differs with regard to the
type of work to be done, its length and the budget, there are certain
features that could be included in any contract.

First, of course, there are the fees. In the initial development phase
decide whether the price fixed is based on the relevant specifications
and proposal or whether it would be hourly payments for x amount of
employees. Determine what time will be billed for services and see
that you, as the client, will be able at any time to question the
hours billed for services. Any reimbursements to be made by the
outsourcer would be those originally decided upon in writing.

Also consider the response time. A set time, such as 48 business
hours, should be fixed for responses by both, the client and the
outsourcing party in the offshore contract. Responses include any
development clarifications and status updates from the vendor’s side
and feedbacks, clarifications, approvals or disapprovals from the
client. An estimated date for the completion of the project must also
be set by the provider.

The offshore contract must also have a detailed and accurate
description of the services expected from the provider. This would
include techniques, tools used, and timely and detailed progress
updates.
The outsourcing client must in turn provide and maintain his own
production system and make all up to date developed software modules
and documentation related to the project available to the provider.
Also included in the offshore contract must be skill requirements,
holiday schedules, the ability of the vendor’s employees to speak
English, and details of any third party contracts.