For most industries globalization is arguably one of the mor

For most industries, globalization is arguably one of the more common business trends of the last decade. As your text indicates, there are several considerations that must be evaluated from a contracting standpoint relative to multi-nation operations and contracting agreements. Let\'s take the various contracting considerations presented in your text (and outlined in this week\'s slides), and discuss how they can affect U.S.-based firms seeking a BPO or subcontracting agreement with a foreign company on a region-by-region basis, including: Canada, Europe, Asia, South/Central America, Canada, and Mexico. Based on your understanding and/or experiences in these other regions of the world, what do you think are contracting considerations that should be considered and addressed in the BPO contract?

Solution

Some of the contracting considerations that should be considered and addressed in the BPO contract are:

1)    Personnel issues warrant particular consideration throughout the negotiation process.Human resources (HR) representatives from both the vendor and the customer should be included in the outsourcing teams as early as possible. The number of representatives will depend on the scope of the transaction and the number of sites or locations that will be transitioning employees and may include legal counsel with employment law or HR expertise. Some of the issues that should be addressed are:

- Due diligence i.e., preliminary information gathering and analysis

- Terms and conditions of employment

- Employee transitioning

- Administrative and financial responsibilities

- Contract-related issues (e.g., warranties, indemnities, rights upon termination)

2) Governance

This will involve determining how Customer will manage the contract globally and in each of the locations receiving services. The issues that would need be considered as part of governance are:

- Customer\'s internal organizational structure

- Vendor\'s organizational structure

- Mechanism pursuant to which the two structures will interact

- Escalation procedures locally and centrally

- Dispute resolution procedures

- Define Change Control Procedures Services