Explain Outsourcing. Enumerate the key points to be considered while drafting an outsourcing agreement.

Answer 4(c) Outsourcing is the contracting out of a company's non-core, non-revenue producing activities to specialists. It differs from contracting in that outsourcing is a strategic management tool that involves the restructuring of an organization around what it does best - its core competencies. The key points to be considered in the drafting of an outsourcing agreement are: Duties and obligations of Outsourcer Duties and obligations of service receiver Security and confidentiality Legal compliance Fees and payment terms Proprietary rights Auditing rights Applicable law to outsourcing agreement Term of the Agreement Events of Defaults and Addressing Dispute Resolution Mechanism Time limits Location of Arbitration and allied details Interim measures/Provisional Remedies Privacy Agreement Non-compete Agreement Confidentiality Agreement Rules Applicable Appeal & Enforcement Awareness of local peculiarities Survival terms after the termination of the outsourcing agreement.