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Variations: Multi-Country Outsourcing vs. Single Country Outsourcing
Territorial Scope. Enterprises operating in multiple countries need to select a sourcing strategy that fits their territorial footprint. To meet such needs, “best-of-breed” service providers have developed service delivery centers in multiple locations and familiarity with local compliance requirements for their in-scope services.
Compliance. Multi-country outsourcing agreements cross multiple jurisdictions and need to be structured for all relevant compliance requirements. Such agreements typically have a master services agreement or global services agreement, accompanied by separate specialty agreements for affiliates in each country that receives the services.
International Nature of Single-Country Transactions. Single-country outsourcing transactions may nonetheless be international in nature, since the service delivery center might be in a different country (or different countries) than the enterprise customer’s operational locations. The model contract should address legal compliance and rights (including enforcement rights) in each relevant jurisdiction.
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