Technology outsourcing, also referred to as information technology outsourcing, is the practice of outsourcing a company’s computer or Internet-related work (e.g., programming, coding, etc.) to other companies. It is often used in connection with the term “business process outsourcing,” which is the practice of outsourcing work that does not require as technical of an expertise. The need for technology outsourcing often arises from a lack of resources or a drive for cost reduction. Information technology outsourcing is also be referred to as information technology-enabled services outsourcing.

Contrary to popular belief, technology outsourcing does not necessarily mean technology is outsourced abroad. The United States often ranks as one of the top destinations for technology outsourcing. As such, it pays to ensure that the company has the proper legal agreements in place.

Outsourcing Agreements and Outsourcing Services

No matter how simple the outsourcing may be, companies should be diligent in putting information technology outsourcing agreements in place. Any project that requires work to be done outside of the company should be subject to an information technology agreement.

Whether the work is being completed by an independent contractor or a specialized firm, an information technology outsourcing agreement will increase the amount of legal protection and recourse available.

A proper outsourcing agreement should address several different aspects of the project. An outsourcing agreement should address expectations of the company, time frames and measurements, bonuses and penalties, quality and reviews, and exit strategies.

Information Technology Outsourcing

Information technology outsourcing agreements can be complex. As a result, it is important to have a clear idea of the scope of the agreement. We negotiate technology agreements in order to ensure that the right core concepts are at the heart of the agreements. Likewise, we assist with setting appropriate schedules for deliverables, drafting timetables, and executing agreements that are beneficial to clients. And if breaches of contract or errors occur, we assist in pursuing appropriate damages, enforcing technology agreements, service credits, as well as help with negotiating the termination of the contract or business relationship.

As a technology and data law firm, our technology and data attorneys can assist with advising on technology outsourcing legal issues. See our Technology & Data service line page for additional information about technology outsourcing legal services.