Many businesses choose to hire independent contractors for their services rather than hire full-time employees. This is especially the case if they need one-time help with a project or occasionally need outside help.
Services agreements are standard in the world of independent contractors and freelancers. However, if the independent contractor, who can be an individual or a company, is located outside of the US, you need an Outsourced Services Agreement.
There are several reasons some businesses decide to outsource projects to the workforce of other countries. For one, a company might need a particular service that only a company or person without the US can perform. Or, more commonly, foreign services provided can be less expensive, perhaps significantly so. The Outsourced Services Agreement is especially beneficial to smaller companies without many employees and can't afford US-based independent contractors.
Depending on your state, an Outsourced Services Agreement may also be known as:
Any company may choose to outsource some of its work or projects. Whether it happens only once or regularly, the company will need an Outsourced Services Agreement to ensure everything is carried out according to the law.
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All service agreements should contain essential provisions protecting both the client and the service provider. If you are not sure where to start, it is probably best to use a template to guide you through the process.
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The client and the service provider must sign the document for it to be legally enforceable. Notarization of signature witnessing is not necessary but can make the form harder to contest.
After signing, it is customary for both parties to keep a physical copy of the document. Securing your copy of the Outsourced Services Agreement is essential if you have to prove or enforce the contract's provisions in the event of a dispute.
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