An outsourcing agreement frequently raises crucial questions on the contractual structure to get better control over its performance.
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Outsourcing agreements are always a new adventure and trying to find the best contractual arrangement is not easy. ย And this task is even harder in outsourcing agreements where the supplier provides a large part of the services and licenses necessary to run the business usually on the basis of a profit sharing arrangement. ย This situation might lead to relevant tax related risks because of the willingness of the supplier to control the business.
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Implications of forum selection and applicable law clauses are often underestimated, but they become a major issue when outsourcing agreements have to be enforced. After having discussed aboutย liability,ย terminationย andย SLAs and penaltyย clauses, we will review the most often issues connected with such clauses.
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