After considering the different legal issues in offshoring your business you will most probably be convinced that India is the ideal place to outsource to. Numerous organizations are already outsourcing their businesses and have not faced any problems, with legal matters in India except, perhaps, for a few minor hiccups,
Indian laws keeps changing to meet the needs of the day and in order to adapt to the requirements of the most recent international laws. India had accepted the “world trade organization agreement” when outsourcing was in its infancy. It, also, abides by the “agreement on trade related intellectual property right”. There are several amendments to the intellectual property laws of India.

Laws affecting copyrights, designs, patents and trademarks have been altered to make them more relevant today. Such effective changes have transformed India’s intellectual property laws.
As outsourcing brings two legal systems into the picture the private international law is resorted to. Prior to a legal contract being signed Indian outsourcing service providers see to it that the “Proper Law of contract is applied.
Once you have expressed the choice of proper law Indian courts will support it.
The legal aspects of the agreement will be supported by Indian courts under sections 13, 15 and 44A of the Indian Civil Procedure Code and Section 41 of the Indian Evidence Act.
Thus it is obvious that there will be no legal hitches when outsourcing to India if you select arbitration to be the method of resolving any disputes.
However, the outsourcer must ensure that his/her country also has a law parallel to the Section 44A of the Indian Civil Procedure Code.
When signing the legal contract in a country different from Indian law see to it that all the formal requirements of that place of contract are fulfilled and that India supports enforcing that law. There must be a law governing the legal contract.