Outsourcing practices continue to transform business operations. This is especially common in the area of technology where outsourcing solutions can range from entire ICT functions to discrete applications.

MinterEllison Technology Law Partners, Anthony Borgese and Nick Pascoe, contributed the Australian Chapter to the International Comparative Legal Guide to: Outsourcing 2019. In this comprehensive article, Anthony and Nick, along with other MinterEllison colleagues, provide a broad overview of common legal issues in outsourcing in Australia.

While outsourcing transactions are not subject to any national laws, regulators of particular industries - for example the Australian Prudential regulatory Authority (APRA) in respect of financial services, superannuation funds and insurers – regulate the outsourcing activities of these sectors. At the same time, government agencies and public sector bodies may be subject to policies or guidelines depending on the nature of the service being outsourced.

In addition to the applicable legislative and regulatory frameworks, the chapter also reviews data protection and privacy, intellectual property, service levels, insurance, liability, dispute resolution and tax issues.

Like any business strategy, there are key risks and challenges that need to be considered when negotiating and managing outsourcing relationships. The chapter concludes by addressing liability and the main methods of dispute resolution when an outsourcing does not deliver as intended. Getting it right will ensure that an organisation's outsourcing initiatives achieve the desired outcomes.