Peter Jack

Outsourcing Agreement is a legally binding document between a business and a service provider. The service provider delivers IT services, data processing and information management services and more with the help of its own staff and equipment. An outsourcing services agreement in India is drafted to pen down the responsibilities of both the parties, tasks to be delivered, goals, payment breakup, etc. Looking for best lawyers to draft an outsourcing contract in Delhi? Contact Feelium E-contract, one-stop digital destination for all your agreement requirements.

This blog talks about the types of outsourcing services contract in India and major clauses to include in the agreement.

Types of Outsourcing Contracts

Time & Material Outsourcing Contract This model is used for a long-term software development project and the estimated time and cost cannot be predetermined. It works on the basis of IT services or product required and the time taken to complete it. This contract is very flexible because it ends only when the client is satisfied with the final delivery.

Fixed Price Outsourcing Contracts Fixed Price Outsourcing Contracts are commonly used for IT outsourcing services. It’s a well-managed project in which the requirements are clearly mentioned in the RFP along with the estimated costs. As the name signifies, clients need to pay a fixed amount for a particular service. The fixed cost outsourcing agreement minimizes flexibility or any involvement in the project scope.

Dedicated Team Outsourcing Agreement This contract is drafted when you hire a dedicated team for outsourcing and are allocated to work on a specific project. The outsourcing agreement includes the tasks to be done by the team and goals to be achieved. You can choose various engagement models to build and collaborate with the team for a seamless communication.

Major Components of an Outsourcing Contract in India

Detailed Project Scope This clause includes the service requirements and response the outsourcing company sent while bidding. Ensure that the final scope of the project and services is mentioned clearly for the offshore teams to understand.

Asset Transfer Info Various IT assets are transferred to the clients by the service providers. It may include telecommunication equipment, computer hardware, leases on equipment, software licenses, etc. Make sure your contract clearly mentions all the transferring costs.

Cost and Payment Structure The pricing of the outsourcing arrangement, mode of payment, and the payment structure should be clearly mentioned in any outsourcing contract. It should also lay down the amount to be paid along with its break-up. Any re-negotiation of the costs in a said period of time must be mentioned in the contract.

Dispute Resolution Section Disputes may arise between the parties due to various reasons. Hence, any third-party or an arbitrator assigned to resolve the dispute must be mentioned in the contract.

Exit Strategy This part covers following questions related to the termination process of an outsourcing agreement: How do you terminate the outsourcing relation? Would it hurt your business? Will you still have complete control over the software?

Ownership of Product Every company wishes to take the ownership of the intellectual property and the final product. However, in some legal binding outsourcing contracts in India, vendors and the company outsourcing IT services share the ownership. The ownership rights should be clearly mentioned by the company to avoid future disputes.

Technology has changed the world into a digital village in terms of connecting people from different countries, languages, and cultures. In this digital era, sharing information is much easier than ever before. Every year, new tools & technologies have been discovered and the online marketing landscape has come up with thousands of new solutions. Now, the marketers have various options to connect with new audiences, promote their products or services and easily build brand loyalty.

This year too new technologies and tools have emerged in the arena of online advertising that marketers should adapt in order to survive in the competitive world. Here are the few digital advertisement trends that leading online marketing agencies in India are utilizing to help businesses thrive in the competitive digital business model across the globe.

Chatbots

According to research, 43% of customer prefer to use an online chatbot rather than calling customer service experts while communicating with a brand. Even, many companies rely on chatbots. They believe that it is an effective software program that interacts with website visitors and customers. Chatbots communicate with the user in a natural way through the text chat windows to help web users find what they are looking for. Hiring an individual to monitor and communicate with visitor can cost you more but chatbots save cost by answering common questions on company behalf. And subsequently, users will appreciate the personalized services and gets their answer quickly. So, if you are in the digital marketing business, it would be wise to integrate this feature in your website to amplify your customers’ experience. Hiring an internet marketing company in Delhi will surely help in creating a great chatbox for your website. Digital marketing agencies have a team of master coders who can develop efficient and feature-rich chatbot in faster turnaround time.

Private Messaging Apps

In 2020, many firms will start shifting their focus on how to better use private messaging apps. Smartphone apps like WhatsApp, Instagram, Viber, etc are already gained massive popularity worldwide. Instead of emails, many companies are adopting the use of private apps and private messaging groups for promoting their products or services. The major brands, as well as online advertising agencies in Gurgaon, are already monetizing messaging apps and soon enough, the customer will able to pay for products or services directly using messaging apps. Some applications like WeChat Pay have made significant progress in making it easier to pay online, WeChat, PayPal and Venmo are already using these type of apps for transferring money to their peers.

Google BERT

Google BERT has made a great impact on the SEO world. It is a deep learning algorithm that is related to natural language processing. Google is making its search engine smarter and improves its ability to understand the complex nuances of language and the searchers’ intent. According to Google, BERT will affect complicated search queries based on context. Google says, “Well, by applying BERT models to both rankings and featured snippets in search, we are able to do a much better job helping you find useful information. Particularly for longer, more conversational queries, or searches where prepositions like “for” and “to” matter a lot to the meaning, Search will be able to understand the context of the words in your query. You can search in a way that feels natural for you.” If you want to stay ahead in the competition, you need to make sure that your website and content marketing strategies are designed to keep the Google BERT algorithm in mind. Hiring an internet marketing company for digital marketing services in India can help in keeping your website updated and leverage benefits of this new Google algorithm.

Voice Interaction

Famous voice interaction Google, Siri, Alexa and a host of other smart device are continuing to rise. This shows that people like to talk and it is the most preferred way of interacting. And now technology is finally catching up to the way people want to find, shop and discover new things. However, adopting a voice search strategy is not all about relevant, it’s also about creating a unique way and optimized customer experience that will build brand loyalty and customer relationships. Marketer targeting voice search users should remember to write in a conversational tone like using keywords that people will speak rather than just type. Doing this will help you get the coveted position zero or featured snippets on Google. If you do not know the ABC of voice search, you need to look for an online marketing agency in India to optimize your website for voice search and make your website mobile optimized.

Personalized Marketing

Many companies make an effort in personalization but only a few of them are excelling at it. Market giants like Amazon, Flipkart, Netflix, Nike, etc have the data and analytical power to create a highly customized experience. Customers are provided with a relevant message at the right time and place- and they really adore it. Companies like Amazon grew its customer’s base by analyzing visitor behaviour and promoting their products based on the user’s past history and intelligent assumptions. Personalization is truly the future of digital marketing. One study even shows that by 2020 at least 90% of online advertisers will start using marketing personalization in some shape and form. And by 2021 there will be a significant increase in fully personalized websites.

If you are running a business, it is vital to know about the current marketing trends and be able to stay on top of the competition where digital marketing is headed in future. Use innovative technology like Chatbots, Google BERT to improve conversion rates. And as companies like Amazon, you can start your personalizing your product and provide private messaging apps to grow your customer base by using top social media apps. Hiring an online marketing company in India is a smart option to take benefits of this latest digital marketing trends.

Under the Indian Contract Act, 1872 a vendor agreement specifies certain terms and conditions under which the work is to be completed / completed by the vendor/seller. The vendor agreement in India comprises vocabulary features such as the quality of goods supplied or services provided, the duration of the contract, terms and modes of payment, vendor limitations, etc.

Since maintaining the supply chain throughout is key to running a good business, a dispute with a supplier can adversely affect the output efficiency of the business. Thus, a vendor agreement is necessary to aware each party about their responsibilities and consequences. In this article, we will discuss the importance of vendor agreement, key clauses, required documents and the procedure to make an agreement. Whether you require a vendor agreement in Mumbai, Gujarat, Hyderabad, Delhi, Bangalore, Maharashtra or any other city, this article will guide you in the right direction.

Significance of Vendor Agreement in India

The agreement clearly illustrates the transaction details and cost of products or services to be delivered. Both parties can plan their budget accordingly, this will increase work efficiency and transparency. The contract also states the consequences if the vendor fails to meet obligations. Businesses today rely on vendors for many things, and not meeting the obligations can result in severe loses. Therefore, a vendor agreement may include that the vendor pays a certain amount in penalties if they are unable to meet their obligations. In order to maintain a contractual relationship, it is important to decide the extent of private data just as data identified with ownership. Organizations often dedicate countless assets towards the improvement of restrictive data. Drafting a vendor agreement in India secures such data and ensures the confidentiality of terms and conditions.

Points to Remember while Making Vendor Agreement in Delhi

The agreement date and delivery date should be mentioned in the agreement. Mention the precise time of delivery for goods and services. Location where the service will be provided should be decided beforehand. Create a Statement of work without which the vendor agreement in Delhi will be considered ineffective.

What are the Key Clauses of the Vendor Agreement in Mumbai?

The agreement should have the exact demonstration of goods and services. One of the essential clauses is the price at which the products will be sold to the vender. The price can be either fixed or variable. It can also change as per the time and requirement. The vendor agreement in Mumbai should clearly state the time and frequency terms of the contract. The agreement should elucidate the penalties or interest charges for deferred or delayed payments. Mode of payment must be mentioned in the contract as well. It should also address the issue of damage or defective good, delayed payments. A termination manner or an exit option unilaterally or bilaterally should form the basis of any agreement according to the requirement. The whole concept of working product ownership between a vendor or vendee needs to be previously decided by including an explicit clause. The obligation to not disclose any material to third parties or non-stakeholders should be mentioned in the vendor agreement.

Requirements for Vendor Agreement for Businesses in Delhi/NCR

To begin with, you have to pin down the dates on the first page of your vendor agreement and mention the addresses of both parties in the document.

Mention your vending license to prove that your organization is legally authorized to sell the items and services listed in the contract.

Draft a brief statement of vendor expectations regarding costs, taxes, delivery dates, payment modes, compensation and periods, etc.

Explain the way you and your customers have consented to manage tax imposition on products & services.

Lastly, you need to mention the delivery details.

Procedure to Form a Vendor Agreement in India

Both parties should draft the agreement and mention all required clauses.

Once the draft is ready, the vendor and vendee need to sign the document.

When you begin a startup company, you need to form relationships with lots of other businesses and people. 

To reduce any kind of uncertainty in these relationships, startups enter a contract with them. Signing a legal document defines the roles and responsibilities of each party and paves a smooth working condition for the future.