Offshore Outsourcing of Business Processes: Understanding IPR Implications

Abstract

Business process outsourcing is a multi billion-dollar industry today. Intellectual property becomes important in such arrangements; as such projects may require resources and information to be shared between the client and the service provider. Underlying the availability and application of these resources such as personnel, hardware and software are intellectual property issues, more specifically patents, copyrights, trademarks and trade secrets. These intellectual properties have the potential of providing firms with sustained competitive advantage which, in turn, affect the firm performance of the business.

Given the importance of IPR implications and the growing BPO industry, the paper attempts to develop a framework for understanding IPR implications for offshore outsourcing of business processes. The framework can be used by both the client and service provider for development and sharing of IPRs to their mutual advantage.