Brand Protection · Business in India · Business News · Business Stock · Corporate Company · Cyber Law Firm · Entrepreneur · Entrepreneurs · Entrepreneurship · Equity · incorporate legal entity · India IP Law firm · Indian Patent Office · initial public offering (IPO) · inventors · IP due-diligence · IP India Law · Legal · OFFSHORE OUTSOURCING INDIA · Patent Agents · patent attorney · Patent Attorney Expert · patent claims · patent drafting · patent drafting · patent invention · Patent Invention · patent prosecution · patent specification · protecting business idea · Start New Business in India · Start ups · Trademark Rights · Writing Patent Application


Article Source:


The practice of engaging an external organization for performing in a country where the products or services are not developed or manufactured is termed as “Offshore Outsourcing”. The business is performed by a foreign country in a foreign country. Sending work overseas with higher wages reduces the country’s own domestic employment and domestic investment. In countries like United States and United Kingdom the customer service jobs and jobs in IT sector have been or are potentially affected.

COST – not the only reason for offshore outsourcing

It is definitely one of the main reasons for offshore outsourcing but there are other reasons as well. When it is decided to outsource the work initial investment is needed in terms of infrastructure, recruitment, training, etc, while the cost advantage is seen much later. There are savings in offshore outsourcing, but the quality and value addition is realized only after the outsourcing begins. NASSCOM reported that India’s great attraction as the outsourcing destination is its unbeatable value proposition and the PQR (Productivity, Quality and Rate) factor. India is at an advantageous position due to its active government support and stable political climate. According to a cyber lawyer, India is at the 12th position that has cyber legislation apart from countries like the US, Singapore, France, Malaysia and Japan.


India is the most highly sought country as it has become a crucial necessity for the business organizations that are trying to reduce their overhead expenses. India is looked upon by many countries as a base in foreign land where their operations and business can be expanded and the outsourcing arrangements can be made for testing the grounds. Technically skilled manpower is highly available in India. After US India is the second largest exporter of software and has many software companies with ISO 2000 certification than any other country in the world. India is rated as number one choice for offshore outsourcing by a World Bank funded study.

Indian Laws

From the perspective of doing business in India and offshore outsourcing to India, the most important law which regulates all aspects relating to a company is the Companies Act. It contains provisions relating to formation of a company, powers and responsibilities of the directors and managers, raising of capital, holding company meetings, maintenance and audit of company accounts, powers of inspection and investigation of company affairs, reconstruction and amalgamation of a company and even winding up of a company. In addition, the Indian Contract Act is another legislation which regulates all the transactions of a company. It lays down the general principles relating to the formation and enforceability of contracts; rules governing the provisions of an agreement and offer; the various types of contracts including those of indemnity and guarantee, bailment and pledge and agency. It also contains provisions pertaining to breach of a contract. The other major legislations include: the Industries (Development and Regulation) Act 1951; Trade Unions Act; the Competition Act, 2002; the Arbitration and Conciliation Act, 1996; the Foreign Exchange Management Act (FEMA),1999; laws relating to intellectual property rights, etc.

Legal Issues in Offshore Outsourcing

There has been number of legal issues in offshore outsourcing to India as more and more global organizations are outsourcing their business processes and IT services here. If an organization is outsourcing to India, it should be made sure that the organization is aware of Intellectual Property protection and the data privacy and protection in India.

Taxation in India: Offshore outsourcing decision is greatly influenced by taxation policy of India. Before outsourcing, the tax associations should be understood. This is an important legal issue as different countries have different tax laws. The outsourcing provider can be consulted about which tax provision would be suitable in the legal contract.

Choice of Law & Contracts in India – While executing a legal contract, the laws of a single country are not sufficient. Accordingly, prior to signing a legal contract, it should be made sure that the law governing the contract is decided. Consequently, if the choice of law is expressed in the contract, it will definitely be supported in the Indian courts.

We are a full service law firm based in India, providing services to clients worldwide. As an international law firm, we offer specialized services to our clients for setting up business in India and assisting our clients with all regulatory compliance. We work closely with leading US and European law firms and attorneys in India.

Our Intellectual Property Services portfolio includes detailed analysis for the preparation and prosecution of patents, Drafting of Provisional Patent application, Drafting of Non-Provisional Patent application, Competitor Patent Analysis, Claim Charts, Patent Infringement Research and Analysis, Patent Validation & Invalidation Research and Analysis, Freedom-to-operate & Product Clearance Search and Analysis etc.

Our law firm assists the clients in incorporating a private limited company in India, a public limited company in India, Limited Liability Partnership (LLP) in India, partnership firm in India etc. As an international law firm, we also help our clients in incorporation of the offshore companies across multiple jurisdictions worldwide.

The law firm provides a diverse range of corporate law services, including Initial public offerings, business counseling, mergers and acquisitions, financial transactions and investment management, bankruptcy, franchising and licensing, consumer and advertising laws, trade regulations and practices, etc.

Visit our Business Blog homepage:

International Technology Business & Patent Law Firm in India: Patent Drafting, Patent Searching, Patent Filing in India, PCT National Phase Filings in India:

International Business & Management Company in Singapore: Starting a Business in Singapore:

Contributors: Prity Khastgir andRahul Dev

We regularly update ourFacebook pageand share similar stories onTwitter. You can also check out our premium service offerings for Mobile Applications, Social Media & Cyber LawsandPharmaceuticals, Biotechnology, Food & Healthcare
To know more about us, get connected with us on
LinkedInor mail us atinfo [at] techcorplegal [dot] com

Our Business Law Services: Company & Individual Representation, Business Litigation & Corporate Law, Business formation & Review of Business Formation Documents, Cyberlaw, New Media, & Internet/Technology, Entertainment, Sports, & Media, Contract Negotiation, Review, & Drafting, Intellectual Property (“IP”), Real Estate Transactions and Landlord/Tenant Disputes, Employment Law, Securities, Mortgage, Banking & Finance, Mergers & Acquisitions, Legal Malpractice / Ethics Violations / Company Policies / Website Terms & Conditions, Brand Identity & Positioning, Brand and Intellectual Property Licensing and Development, Compliance, Preparation of Business Plans, Business Process, Efficiency Consulting, & Outsourcing, Investment & Strategic Ventures, Project Finance & Management, Competitive Landscape Analysis, Right Time to Incorporate a Legal Entity, Finance, Funding & Venture Capital, Type of Entity: Company vs. Partnership vs. Sole Proprietorship, Right Location (Jurisdiction) to Incorporate a Company, Company Incorporation in India, Partnership, Sole Proprietorship & LLP in India, Setting up Liaison / Representative / Branch/ Project Office in India, Franchising in India, Licensing in India, Retail in India, Things to do Before Quitting a Job and Starting a Business, Selecting a Business Name, Branding & Trademarks, Shareholders & Stock Options, Tax Planning & Management, Employees, Interns, Human Resource (HR) Management & Labor Laws, Joint Ventures, Corporate Restructuring, Mergers & Acquisitions, Commercial Disputes, Litigation & Arbitration, Foreign Direct Investment & Foreign Exchange Regulations in India

Our Patent, Trademark & Legal Services: Patent Searching: Worldwide Patent Searching, Patentability Search, Invalidation Search, Freedom to Operate/ FTO Search, Infringement Search, State of the Art Search, Patent Process and Support Services Outsourcing: Patent Drafting, Patent Illustrations, Patent PCT Filing in India: Patent Filing, Market Research before International Filing, Patent Prosecution and Patent Grant Services in India: Patent Prosecution in India, Preparing Response to Office Action, Post Patent Grant Services for Licensing Inventions: Patent Licensing, Licensability Analysis, Patented Technology Commercialization Services for Individuals, SMEs, Companies: Patent / Technology Commercialization, Due Diligence & SWOT Analysis, Worldwide Trademark/ TM Searching and Filing Services: Trademark Searching, Trademark Filing, Trademark Prosecution & Licensing, Trademark Due Diligence, Legal Research, Process and Support services Outsourcing: Legal Research, Contract Management, Litigation Support, Patent Litigation Support, Medical Litigation Support

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.