Laws of Service Recipient’s Country
Everyone needs to focus on the laws of the service recipient’s country. Such laws govern the ability of the enterprise customer to outsource and the service provider’s ability to conduct business in that country.
Enterprise Customer’s Concerns
The enterprise customer, or service recipient, needs various types of assurances that relate to the outsourcing process. These include:
- a concern that the outsourcing of a business process will not create new legal liability simply because of the outsourcing;
- a concern that the outsourcing will not cause the enterprise customer will not suffer a business interruption due to the laws of its country; and
- a concern about the impact of regulation and taxation of its country upon the viability of outsourcing.
Service Provider’s Concerns
Such laws can pose barriers to entry for foreign service providers, so “offshore” providers need to investigate what impact their operations will have on their target customer base and upon their own ability to do business with their target customers.