Notes

Dedicated Team Contracts: How Do They Work?
A dedicated team model is really a win-win solution for long-term projects which have evolving requirements.

Your client has full control on the workflow and can manage it. That is an option provided by outstaffing agencies or outsourcing companies and is used widely for software development due to the flexibility.

Exactly what is a Dedicated Team Contract?
A contractor (outsourcing company), engages the dedicated team model. This enables the team of designers, developers, QAs, project managers and other specialists to focus on a customer's project. The client will pay for each specialist's working time.

The key to the success of the project is how parties come together on the terms of these interaction.

Following the client and outsourcing company have found each other and reached a mutually beneficial team model, it is time to concentrate on the legal basis. Here is the dedicated team outsourcing contract. The parties must outline and discuss all potential issues that could arise during the contract's execution from the beginning. This can prevent future misunderstandings.

Important Elements of a Dedicated Team Contract

Contract?s subject of matter
While the outsourcing company acts as a contractor party to the project, the dedicated team is in fact working on it.

This means that the subject matter should be clearly defined, e.g. The parties agree that the contractor provides services through the engagement of a separate team comprising certain specialists.

The dedicated team:
It is important to specify how the parties will acknowledge the number and seniority of developers that needs to be engaged.

Also, the level of involvement by the customer in the choice process. The Annex to the contract, or other communication means agreeable by the parties, usually determines the dedicated team.

It can include team structure, specialists? availability, terms of assignments, etc.

Cost & payment order

The following terms should be arranged by all parties:
Cost of the services;
Reporting period the client pays for;
Post- or pre-payment;
Invoicing and payment procedure;
Late payments consequences


Deliverables delivery & acceptance procedure
It is important to clearly outline the process for accepting and transferring deliverables. Deliverables should be uploaded to the resource. This may be cloud storage, client servers, or software repositories. You can agree on the correct resource under agreement or in another way (e.g. via task-tracking system).

Find out Parties should specify what action is taken up to prove acceptance of deliverables. Is it a payment on the invoice? Or signing a certificate of completion? That is less common in a separate team model.

Management & communication
The customer who comes with an IT outsourcing contract with Dedicated team gets the right to control the tasks and workflows of specialists. The client either monitors and coordinates work on their own, or assigns a project supervisor. It is very important clearly define the management responsibilities in the contract.

Parties must also acknowledge the communication model between customer and the dedicated team to control this process. The client has the right to communicate directly with specialists without the involvement of an outsourcing company. Specialists must follow the instructions distributed by the customer concerning the provision and usage of services. Each reporting period includes a written report by specialists on the tasks completed and enough time spent on them. Additionally it is vital that you identify communication channels.

Intellectual property
Project development can cause the creation of intellectual property objects. Customers are granted intellectual property rights to deliverables as part of outsourcing agreements. Parties should acknowledge the following as a result of importance of intellectual properties:
Designate an undeniable fact of assignment of all intellectual property rights to deliverables for the client
Indicate the time of which the rights will undoubtedly be transferred (at exactly the same moment as payment).
Indicate a price for intellectual property rights transfer or concur that remuneration is included in the amount of the service payment.


Confidential information
Outsourcing contracts must include a section on confidential information. The customer is required to disclose its trade secrets and confidential information to contractors as well as directly to developers.

Pay attention to the confidentiality obligations of contractors under the outsourcing company's internal NDAs.

Nonn-solicitation clause
Direct cooperation between your customer and team makes the chance of solicitation higher under the Dedicated Team model. That is why specialists hired with high-severity penalties are often designated.

When contracting with an outsourcing company, the following should be taken into account:
A period during which the client agrees not to engage developers in services provisions
Fines for agreement breaches


There are many advantages to the Dedicated Team model for both an outsourcing company and a person. To attain the best result, both parties should be on a single page from the moment they sign the contract. Clear and fair contract provisions are crucial considering the long-term collaboration and flexibility of the dedicated team model. You should clearly and fairly regulate any issues that could affect your rights under the agreement.

SOURCE
https://legalitgroup.com/en/dedicated-team/

Website: https://innovatureinc.com/top-10-bpo-risks-and-how-to-avoid-them/