Menu

What to Vet Before Signing an IT Outsourcing Contract
πŸ“°

What to Vet Before Signing an IT Outsourcing Contract

DEV Community: cloudΒ·BryΒ·2 days ago
#YAwghRlN
#devtocloud#devto#dev#vendor#contract
Reading 0:00
15s threshold

Key Points

"Work-for-hire" language doesn't automatically transfer IP ownership everywhere. Under Philippine law, independent-contractor and BPO arrangements require express assignment language β€” the same clause that works in the US may not hold there.

SLA language matters more than SLA existence. "Best efforts" and "industry standard" create no enforceable obligation β€” you need numeric targets and a stated remedy for breach.

100% payment upfront is a hard dealbreaker, not a soft concern β€” it removes the vendor's only incentive to finish.

If your vendor is Philippines-based or otherwise subject to the Data Privacy Act, your contract needs the specific cross-border data clauses the National Privacy Commission formalized in 2024 β€” confidentiality duty, sub-processor approval, audit rights, and data deletion on termination.

Before signing anything, answer one operational question: can the codebase move to a different team on day 90 without the original vendor's cooperation?

This is general guidance from…

Continue reading β€” create a free account

Join HashtagPLUS to read full articles, follow hashtags, vote, and join the conversation.