Alice Khosravy offers the following royalty-free article for you to publish online or in print. Feel free to use this article in your newsletter, website, ezine, blog, or forum. ----------- PUBLICATION GUIDELINES - You have permission to publish this article for free providing the "About the Author" box is included in its entirety. - Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity. - Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only. - If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links. - Please send a copy of the publication, or an email indicating the URL to [email protected] - Article Marketer (www.ArticleMarketer.com) has distributed this article on behalf of the author. Article Marketer does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article. ----------- Article Title: Terms and Conditions of a Global Sourcing Contract Author: Alice Khosravy Category: Business Word Count: 417 Keywords: global sourcing, global sourcing contract, outsourcing contract, outsourcing agreement Author's Email Address: [email protected] Article Source: http://www.articlemarketer.com ------------------ ARTICLE START ------------------
A well-drafted outsourcing contract can create a strong and lasting relationship with the supplier. However, a weak outsourcing contract can cause a project's failure. The contract terms and conditions should always be clearly understood by both parties, before the agreement is signed. The typical outsourcing engagement lasts for several years, which makes it crucial that both the buyer and supplier recognize the terms and conditions in which they are agreeing to abide. Suppliers will work hard to ensure that their interests are being protected and they will draft an agreement that reflects this protection. A buyer can also make sure that they are protected by taking the time to review the terms and conditions to determine the relative position of the contract, meaning whether the contract favors one party over another. The buyer should know what key elements should be included in an outsourcing contract when reviewing the terms and conditions. Most outsourcing agreements will address such issues as performance expectations, responsibilities, scope of work, security procedures, pricing and termination conditions. Other areas that often are included in the contract terms and conditions include governance, rights of recourse and pricing. Reward and penalty clauses are often incorporated into outsourcing contracts, such as incentives for reaching certain targets and expectations, as well as penalties for non-performance and failure due to gross negligence. The termination provision is also an important component to the contract so that reasons for terminating the agreement are clearly identified. A termination clause may include termination for convenience, change of control termination for cause and flexibility of termination. Another important factor in a global sourcing contract involves remedies for dispute resolution and the jurisdiction in which the resolution should take place. This jurisdiction should be fair to the buyer and supplier. The jurisdiction chosen should allow either party to obtain a prompt, neutral and cost effective resolution to the dispute. Before signing the outsourcing contract, the buyer should thoroughly review the terms and conditions to identify any issues that may need to be negotiated. A lawyer or industry expert can help determine the level of protection for the buyer by closely analyzing the outsourcing agreement. Understanding the terms and conditions of the global sourcing contract can help the buyer find success with the outsourcing arrangement. Remember, a global sourcing relationship can last for years to come and in order to receive the most benefits from the arrangement, the terms and conditions must be fair. Taking the time to put together the outsourcing contract is well worth the effort. A&E Consulting is a full service consulting firm that has been successfully helping clients with their global needs. Visit http://www.globalsourceyourit.com or call 818-572-8399 for more information. ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
