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In addition to the now-traditional outsourcing of IT, HR and financial services by multinational companies, facility management outsourcing is becoming increasingly frequent as well. For global companies, similar to outsourcing other operations, it is an attractive option that the outsourcing of group-level facility management services happens under the oversight of the parent company, thus helping to preserve the unified corporate look and standards.
Despite the fact that outsourced services are usually provided on a country level by the local subsidiaries of the service provider, it is not very practical in the case of a global outsourcing agreement to sign separate contracts in each country, because this would take away from the advantages gained by the parent company's international control and the centralised management of the outsourcing tasks. For this reason, the parties most often sign a master agreement, an outsourcing contract relating to all the affected countries, which includes every unified, internationally definable contract condition, such as pricing, types and level of services, methods of performance rating. Above this, specialties and differences stemming from the legal systems of local countries are regulated by a so-called local country addendum signed by the local subsidiaries of the parties, which acts as a supplement to the main contract and is usually a few pages long.
These local addendums usually contain disparities compared to the main contract in these matters, in line with local laws: the possibilities for limiting the services provider's liability, the transfer of the equipment and employees affected by the outsourcing to the service provider, data protection and taxing. The addendum also has to address situations where there is no local equivalent of legal institutions of Anglo-Saxon origin that are generally accepted in international contracts and are used in the master agreement (such as the service provider's indemnity obligation or the transfer of contractual positions). A further difficulty could be posed by the service provider having to meet the conditions of a law that is mandatory for the client's parent company, but is not applicable to the local country.
The adequate contractual regulation of questions posed by an international-level outsourcing can help to achieve that the outsourcing's goals are met in practice, guaranteeing to the affected company that with the help of the human and material resources that it can free up this way, it can concentrate in the future on its core activities and related development tasks.
