BPO contract terms: Some clauses vital to the agreement

A BPO contract is essentially an agreement between a service provider and an outsourcer. It enables the outsourcing company to take over a major or a minor part of the business operations run by the client.

As per the agreement and the BPO contract terms and conditions, the third-party service provider may sometimes operate as a representative of the client and constitute a significant link in the chain of operations.

As a rule, the main elements of the deal are laid out in the clauses set in the BPO agreement. Typically the contract should contain the following: the type of service, payment details, and the period of time for which the contract is valid. The agreement should list the details of the requirements that are necessary to carry out the operation.

Information regarding the qualification and skills of the personnel who are involved in the work is also added. In addition, the site of the operation is also mentioned in the agreement.

Outsourcing contracts coming up for renewal in 2013: Everest Group

Safeguard Clauses in BPO Contract Agreement

It is vital for the client to put in some safeguard clauses in the agreement. Intellectual property (IP) rights should be one of the key concerns while outsourcing work offshore. The fact is that IP laws may be weak in the country where the outsourced operations are carried out. The system in place can be ineffective and unreliable to deal with any issues that may arise with regard to IP protection.

While outsourcing a major project, the company should check the IP protection laws existent in that country and ensure that sufficient safeguards are built into the clauses. Otherwise, there is the possibility that the rights of the client to its work may be put at risk.

Moreover, terms regarding other issues such as piracy and ownership should be added to the agreement. This will ensure that in the event of such an adverse situation, the customer has exclusive rights to the ownership of the outsourced work.

BPO Contact Terms of Quality Assurance in Agreement

Quality is a core aspect that has to be set within the clauses in a BPO contract. The outsourcer should put in fail-safe clauses pertaining to quality issues. These clauses should state how the outsourcing company should manage operations to achieve the best quality. Permitting the client to make periodic assessments of the work done and adding provisions that will safeguard against poor quality of work are key elements that should be dealt with in the contract. 

IT benchmarking provides both the client and the customer with effective tools to ensure quality and competitive pricing. This ensures that quality of service will be delivered and that periodic price revisions and quality assessments can be carried out. This will enable both the client and the outsourcing company to move forward in a healthy relationship.

In most cases, the various BPO contract terms and clauses mentions in an agreement are vetted by an approved authority before finalization to safeguard the interests of the firm.

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