How to start an LPO? Terms and Conditions

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Mathews Emmanuel LLB,MHRM.

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Jan 29, 2009, 1:52:51 AM1/29/09
to LPO professionals

Every legal outsourcing deal must begin with a contractual agreement.
This will define how the outsourcing legal firm and the LPO vendor or
service provider will function together.
When drawing up such a contractual agreement it is vitally important
to have specific procedures and detailed plans in the event of things
going wrong included.
This legally binding document will have three significant dates signed
by both parties. They are the signature date, the date from when the
contract terms will become active and the service commencement date
which marks when the vendor will initiate the services.

The service provider signs the contractual agreement and thus
undertakes to maintain the confidentiality of any information that
will be made available.
The contractual agreement should clearly define the provisions for
training, process and procedures. If these are not documented
correctly it may make for a lot of confusion later on.
The contractual agreement should also include provisions fro a smooth
transition from one idea or solution to another in case of things not
working out as expected.
Your contractual agreement must also specify how and within what time
frame any problems that are sure to arise will be put right as well as
the financial consequences on their not being fixed.
The contract must also take into consideration the steps to be taken
for a pull out should the outsourcing company fail to live up to
expectations and deliver satisfactorily.
Of course it goes without saying that security considerations are an
extremely important part of the outsourcing contractual agreement and
should not be omitted for any reason whatsoever.
In short what you really need to do is look at what a standard
contractual agreement would include but also ensure that everything is
legally valid in an alien country.
You will have to consider local customs and legal standards, and the
fair treatment of employees.
Therefore when you are drawing up your contractual agreement it would
be a good idea to consult local contacts who are familiar with local
customs.
Research and plan your contractual agreement in such a way that you do
not ever need to pull it out again.
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