Outsourcing And Corporate Structure: The Case For Separate Entities
While the myriad of arguments for and against outsourcing are beyond the scope of the legal issues involved, it is important to note that there are valid arguments for and against this practice that affect labor, consumer confidence in a product or a company and the effect of outsourcing in micro and macro economies.
Bearing that in mind, there are several considerations that any company wishing to outsource must consider when placing their business and production centers in remote locations. Issues that a corporation seeking to outsource must consider have to deal with ownership of property and data, dealing with various international legal and financial treaties and the ability of the outsourcing entity to act in legally compliant manner.
The following questions have been addressed in this article:HOW SHOULD PARENT ENTITIES STRUCTURE THEMSELVES WITH THEIR OUTSOURCING ENTITY?
WHAT IS A SUCCESSFUL MODEL FOR CREATING AN OUTSOURCING ENTITY?
HOW DOES FOLLOWING THIS PARENT/SUBSIDIARY MODEL LIMIT LIABILITY FOR THE PARENT?