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What are the Legal Structures of Offshore Outsourcing?


The US business community has by now realized the great opportunity of possible slashing down their operation costs by offshore outsourcing to cheaper but good quality labor countries. If you are a company in the US and want to outsource works to India, China, the Philippines or any other Asian locations, what are the different options that you have? What are the different legal structures that make offshore outsourcing possible? There are three possible options or methods that have been followed:

  • Sign a contract with a third party for getting the services
  • Start your own subsidiary in that country and contract for services with it.
  • Third party contracting with the intention of acquiring it in the future

When you are just starting out on outsourcing, it is better to choose out the independent third part contractor that usually has its own infrastructure and manpower in the offshore country where the service is done. Starting a subsidiary and acquisition etc may be done later, but the initial advantages of letting a third party do all the work means lower risk and freedom from the hassles of startup costs and infrastructure development.

If choosing to go for an offshore subsidiary straight away one will have the advantage of better control and a better security for all your sensitive data and intellectual property. But today independent services providers are also offering a high level of security and consistently maintain a good level of interaction with clients irrespective of their global location.

Managed Outsource Solutions (MOS) is a US based BPO leader and a legal outsourcing service provider that offers professional and affordable services and solutions in outsourcing to offshore locations like India and the Philippines. Services are also available in different areas like legal transcription, data entry, legal research, data mining, litigation support, web development and web design.

About Rajeev R

Rajeev R

Manages the day-to-day operations of MOS from NY. With an interest in information technology, Rajeev has guided MOS to extensive use of digital technology and the internet that benefits MOS as well as MOS clients.