Wendy Gross, Simon Hodgett
Aug 29, 2016
Organizations looking to outsource services across different countries must take into account the cross-border regulations or laws that may or may not apply to their particular transaction. As outlined in an article in International Comparative Legal Guides published by Global Legal Group, while there are no national laws in Canada that specifically regulate outsourcing transactions, there are guidelines and rules that apply to various types of these transactions. In the article, Wendy Gross, a partner and Co-chair of Osler’s Technology Group, and Simon Hodgett, a partner in Osler’s Technology Group, break down the various types of rules and regulations pertaining to outsourcing transactions in Canada, including, for example, Guideline B-10 — implemented by the Office of the Superintendent of Financial Institutions Canada (OSFI) — which regulates outsourcing in the financial services sector.
“Guideline B-10…is viewed as a useful guideline for risk management for outsourcing in other sectors,” Wendy and Simon explain in the article. “…Guideline B-10 is not a set of strictly worded legislative requirements, but rather sets expectations related to risk management and inclusion of certain terms in the outsourcing agreement.”
Wendy and Simon go on to outline the mandated components of any outsourcing agreement in relation to Guideline B-10.
They also explain, in depth, multiple other aspects and nuances of any outsourcing transaction in Canada, including the procurement process, transfer of assets, employment law, tax issues and data protection issues, among other things.
This article appeared in the 2016 edition of The International Comparative Legal Guide to: Outsourcing, published by Global Legal Group Ltd, London.