Canada is one of the significant Business Process Outsourcing player in the global outsourcing market. It really plays an important role into it. Canada is the main nearshore outsourcing destination for United States of America’s businesses. Canada and America have a similarities in terms of their laws, language and business culture. In the field of outsourcing, most of the Canadian businesses have been outsourcing their Information Technology systems and business processes to their U.S. business partners. Because of almost the same Canadian and American laws, the Canada ‘s desire to be the outsourcing destination for U.S. businesses has increased. They are eager to be the top U.S outsourcing destination.
The United States of America and Canada are the partners in terms of businesses especially in the field of outsourcing. There are some legal concepts that U.S businesses must know before they begin an outsourcing relationship with all the Canadian business partner. There are a lot of legal concepts about the Canadian laws that the U.S businesses must know. These are the procurement, regulatory, OSFI outsourcing guidelines, labor and employment laws. Most outsourcing arrangements will begin with a request for proposals or what they call RFP. In Canada, There is a well-established procurement laws and these laws apply to the outsourcing services and most of the private enterprises. It is not just apply in the government processes.
There are a large number of regulatory requirements that U.S businesses must know. These regulatory requirements are applicable to cross-border outsourcing transactions. It will tackle the responsibilities created by the Competition Act, the Investment Canada Act, bulk sales laws, securities laws, and the OSFI Outsourcing Guideline. Competitive Act is all about the outsourcing transactions that involve in the transfer of assets from the customer down to the service provider. The investment Canada Act is about obtaining a “Canadian business” by a “non-Canadian”.
The Canadian business is the type of business which carried on in Canada. While a non-Canadian business is defined as the kind of business that are not “Canadian” or businesses controlled outside Canada. Bulk Sales Laws is where the outsourcing services involves in the transfer of important assets, the bulk sales laws in some jurisdictions will apply. Canada have made a new regulatory guidelines and this is the securities regulatory which enables to better protect their investors in and out of Canada.
The Office of the Superintendent of Financial Institutions (OSFI) has issued Guideline which relates to outsourcing by banks, branches of certain foreign banks operating in Canada, trust companies, insurance companies, and other a federally-regulated financial institutions. It is made to ensure the power of OSFI with respect to those institutions which enables not restrained as a result of the outsourcing activity. Lastly, the labor and employment laws, In Canada, employment law is generally a matter of provincial authority while in United States of America, the employers are free to terminate an employment relationship without prior notice to the employee. Outsourcing is really a matter of providing a quality services to the clients. It really helps the business to lessen its work.
