Research On The Legal Issues Of Offshore Outsourcing In Financial Services

Offshore outsourcing in financial services is becoming an important form of trade in financial services. Because of competitive advantages in economic environment, information technology, labor costs and a potential market, China has gradually become a main country in undertaking offshore outsourcing in financial services. A sound legal system is an important guarantee to develop our offshore outsourcing. But research is deficient on some legal issues, thus can't provide effective guidelines for practice. This paper elaborates on legal issues such as offshore outsourcing in financial services and GATS, risks and legal regulation, intellectual property protection, personal data protection, protection of labor rights and interests. In this paper, the author uses comparative analysis, real diagnosis analysis and some other research methods, in order to provide some references for improving our related legal construction to develop our offshore outsourcing in financial services.This paper is divided into five parts.The first part discusses about the concept of offshore outsourcing in financial services and analyses the legal relationship between the parties. Then it expounds on the effects and finally introduces the current situation and the trend.The topic of the second part is offshore outsourcing in financial services and GATS. From the perspective of GATS, three main legal issues are existed. They are issues of attribution, confirmation of "origin for service" and measures to limit liberalization. On regulating offshore outsourcing in financial services, GATS plays a positive role, but still exists some failures such as W/120 can't cover all related services, cross-border supply and consumption abroad are inexplicit between each other, "origin for service" is not clear, members take market access measure on non-core business, discrimination exists on the provision of national treatment. The author views that to strengthen the negotiations, make more commitments and further promote multilateral trade liberalization is a better solution.The third part firstly makes a simple introduction on the source and specific performance of risks. Secondly, the paper focuses on regulations of international organizations and major participants. Through the analysis and comparison, conclusions are made that countries pay attention to strengthen responsibility of the board of directors, establish outsourcing audit mechanisms, enter into a written contract, select appropriate service providers, but specific measures will vary. The paper finally points out the differences.The fourth part focuses on the main issues about intellectual property protection, personal data protection and protection of labor rights and interests. Intellectual property protection involves the attribution, business secrets and national treatment. The main problem of personal data protection refers to data privacy is often illegal disclosure or accidental lost in the process of outsourcing. As to the protection of labor rights and interests, developed countries make contacts between labor standard and trade to transfer the contradiction when facing the problem of increasing domestic unemployment pressure or inability to restore the domestic policies circumstances. Meanwhile, service provider neglects labor right and interest in order to take more order forms and reduce cost. Developed countries and developing countries have a different view on whether putting labor standard into WTO. This part is designed to elaborate the advanced legal institution and experience of some international organizations, countries or regions to provide references for a better understanding of offshore outsourcing in financial services.The fifth part is about improving China's legislation on offshore outsourcing in financial services. First of all, the paper introduces the development of offshore outsourcing in financial services. That is, China can't become a main contractor, but has gradually become a major undertaking country. Then it analyses the legislation overview of our offshore outsourcing in financial services, pointing out that the relevant legal environment is still not perfect. The main problems are as follows, regulation does not mature, lack of qualifications and access system about provider, lack of a standardized mechanism to deal with disputes, protection for intellectual property rights and data information is not enough, gaps exist in labor legislation and international standards. In this regard, the author proposes corresponding legal advices.