Outsource India Inc. - the Legality of Things

Before you take that potentially profitable plunge into the business of offshore business outsourcing to India or what I like to call Outsource India Inc., I recommend that you consider the legal nature of Indian business. Not doing so could be disastrous. The fact that the law books are being rewritten in India, owing to the sea change in international laws, doesn’t help matters. This article strives to give you an objective view of this type of Law so as to better your efficiency in conducting business with Outsource India Inc. table or is simply in drafting a BPO contract.

The basis of any agreement regarding the BPO sector is of course, the contract. So what are the laws regarding what any firm that wishes to go BPO wants to know: International contracts? Any contract that passes boundaries of country is, at that point not within the grasp of either nation’s laws. In this case the “Private International Law” comes into play. Therefore a particular country’s law must be chosen.

Making sure of the use of a particular legal system is done by choosing what is known as, “Proper Law of the Contract”. The books say that, “Proper Law is the law which the parties have expressly or impliedly chosen, or which is imputed to them by reason of its closest and most real connection”

The Indian courts do accept this “choice”. Whatever Law you choose, be it Indian or otherwise, it will be respected by the Indian system. In the event of a reciprocal arrangement between India and a foreign country, the foreign countries law and ruling would be enacted.( Reciprocal Arrangement: Agreement in which one party will perform a certain act if the other performs a specified act as well.) No suit need be filed. But if there is no reciprocal arrangement a suit may be filed on the other country’s ruling.

In summation, the parties have freedom of choice of the Law which is to rule the contract. The parties’ want will decide the Law that governs the contract.
Remember this!
Consider the following before you go into an international contract:
• Express or imply the choice of law.
• If the contract is signed in a country other than the country whose law is applied, the formalities of that place will apply.
• The Law system you chose must allow for the “Proper Law of the Contract”
• If Indian law is to be enforced on foreign soil ensure that the country has a similar Law to the Indian Civil Procedure Code Section 44A.

With these factors and laws in mind, outsourcing to India, formulating contracts et al should be a cakewalk. You can now use the features of Outsource India Inc. and the Indian legal system profitable to your advantage. Otherwise dealing with such legal issues can be hell.