Smartvue Corp. Nashville files suit against Indian outsourcing firm Mistral Software
SOURCE: Nashville Post
DATE: Nov 1st, 2009
As per Nashville Post (LINK), Smartvue Corp., which produces wireless video surveillance systems, filed suit in Davidson County Chancery Court on October 19 against Bangalore-based Mistral Software Pvt. Ltd. and Nest Power Electronics Pvt. Ltd., headquartered in the southern Indian city of Cochin.
The challenge of jurisdiction, legal options to pursue firms located in remote locations is a key risk when doing a services contract with outsourcing firms. This is more challenging with smaller and mid size firms who technically may have a firm registered in the US to do work but may have very limited presence or assets in the same location.
What the article also highlights is challenges in dealing with multiple vendors globally if they are all part of the same supply chain and who is responsible for what. That and what is the subcontracting clauses you have in your agreement.
Developing software or maintaining software is never easy and neither is managing business processes. If you add to that the mix of remote vendors and specially those which you are supposed to manage without proper due diligence and hand offs planned, it is a major challenge.
So in outsourcing ’size does not matter’, you have to do your due diligence and proper risk assessment upfront before getting into any kind of outsourcing arrangement.
