What is the technological outsourcing and what are its characteristics?

Have you ever thought about outsourcing your company’s technological services? Currently it is very common to outsource to a specialized company certain processes of your company. Among these technological subcontractors, one of the most common is technological outsourcing. In our guide we tell you all its benefits and features.

What is the technological outsourcing?

The contract of technological outsourcing, also known as contract for technological services or computer development, is the document that establishes the working relationship between the client and the company specialized in the IT. This document details the conditions that both the service provider and the customer have agreed.

The outsourcer or service provider will be responsible for managing the computer systems of the client. The service provider handles all the processes and maintenance of the computer system, adapting it to the client’s needs in exchange for an agreed price.

Technological outsourcing aims to increase the productivity and competitiveness of the client company. It can be made in two ways:

  • The subcontracted company only provides the contracted service.
  • The contracted company handles the service and supplies the work team for this purpose.

What are its benefits?

  • Increased competitiveness: It reduces execution times, providing a competitive advantage in the market.
  • Flexibility: Greater efficiency in process development, reducing response times.
  • Lower risk: Service providers take on a large part of the risk and manage it efficiently.
  • Cost reduction: By having the possibility to take advantage of the infrastructure of the supplier, less investment is necessary.
  • Higher quality: Companies get qualified staff with extensive experience in the sector at a significantly lower cost.

Characteristics of the technological outsourcing

Technological outsourcing consists in the hiring of external companies to perform technological functions that are not strategic for the company. This allows the company to save costs of equipment and employees. Among the main points that the document should include are:

  • Service: You must define in detail the activity, its duration and its completion.
  • Payments: The economic conditions under which the services are carried out shall be agreed.
  • Clauses: It will include clauses relating to data protection, intellectual property, non-competition, cessions, confidentiality, termination of the contract…
  • Responsibilities and obligations: Responsibilities and obligations of both parties will be agreed in the document.

Service provider obligations

  • To carry out the services contracted by the client in a correct way during the agreed period.
  • Appoint a project manager, who coordinates all the execution. He will also contact with the client.
  • Make a report that corresponds to the work done and its duration. Thus, stablishing a record of all its work.
  • Extra services that are not covered will be detailed in a separate proposal. To be valid, both parties must sign them.
  • The computer system must present the agreed quality levels. The service provider will be responsible for this and its good functioning.
  • Service provider must ensure the protection and retrieval of customer information, if necessary.
  • Return customer’s property to the customer at the termination of the contract.
  • If direct or indirect damages are caused by facts beyond service provider control, he will not be responsible for them (fire, flood…)
  • The service provider has the obligation to transfer the management of the computer system at the termination of the contract to the client or a designated third party.

Customer obligations

  • Commits to the payment of the contracted services.
  • Must provide the service provider with all the information and materials necessary for the execution of the contracted work.
  • You must collaborate in all that is necessary for the correct execution of the service.
  • If any incident may affect the delivery of the service, the customer must communicate it to the subcontracted company.

If you still have doubts about the contract of technological outsourcing, contact with our specialized lawyers. They will advise and resolve your doubts.