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Sub- contracting

(Querist) 01 October 2010 This query is : Resolved 
Apart from Non- Disclosure Agreement, what other steps should be taken to make sub-contracting safe?

Here, the documents are confidential and the principal oursourcing company wants to oursource it to other company.

The problem is that the principal company cannot hide the name of its client whose work is to be sub- contracted. So what steps should be taken to make the sub- contracting safe so that even if the name of the client is disclosed the project remains safe with the principal company?
R.Ranganathan (Expert) 01 October 2010
Have an Indemnity Bond and an Undertaking from the sub contractor. Minimum Guarantee amount may be obtained which can be refunded on the expiry of the sub-contract period.
s.subramanian (Expert) 01 October 2010
I agree.
Nu.Delhi.Law.Fora. (Expert) 01 October 2010
Please incorporate a wide coverage zone in the operation of the proposed agreement which will necessarily cover all trade secrets and proprietary information of the Company disclosed to the Subcontractor, and of the Subcontractor disclosed to the Company, after the date hereof, including, but not limited to, certain Data and Information, etc.

Please also bind the Subcontractor with specific duties while handling receiving and holding in confidence all information received pursuant to this Agreement; not to use the trade secrets and other proprietary information given to the Subcontractor and/or his designated representatives. "Trade Secrets' and "Proprietary Information" be given adequate definition and scope for you to play around.

Trust this would suffice.

Rabin Majumder
Advocate & Attorney
For Nu.Delhi.Law.Fora.
gagandeepsingh.bagga (Querist) 04 October 2010
Still one question is pending.

Let us say that the principal oursourcing company entered into the agreemnet with the sub- contracting company taking care of all those clauses which suffice it.

If the sub - contracting company forms a seperate and distinct indentity and then approaches the client of principal outsourcing company, then in that case what is the solution?

How can that be stopped?


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