IT Support provision subcontracting

The possibility to provide remote services allows a significant number of companies broadly situated in the IT sector It support provision subcontracting, which are not located in the Republic of Bulgaria, to enter into agreements with Bulgarian companies for provision of support and other it services. 

Such a partnership can be highly beneficial to both sides. The contracting company increases their capacity of services by including Bulgarian talent, without having to bear the cost for relocation and other similar concerns, while the Bulgarian entity receives good business opportunities.

The Contractor (the company performing the subcontracted services) can be big or small. It can even be created specifically for this purpose and can have the same owner, manager and employee. The latter practice is becoming more and more common as a way of hiring additional people in foreign countries without having to actually hire them on an employment agreement.

Employment and tax legislation differ significantly between member states and a number of considerations are to be made for the above partnership to work.

The contract itself required significant overview and redaction as the foreign company often attempts to impose unfavorable conditions upon the Bulgarian based company. It is very often the case that significant improvement can be achieved in the conditions offered even by a large company to a subcontractor through well placed negotiations. 

Furthermore when the company acting in the capacity of subcontractor is small, with a personel of few people or even one, great attention must be paid to the drafting of the clauses related to vacations and on call services. If such clauses are not included significant issues might arise. 

In view of the above, should you find yourself in the position to particiapte, negotiate or perform in such a partnership, we strongly recommend legal consult which shall firstly give you a clear understanding of your position, rights and obligations, and further will serve to significantly impove the conditions of the potential agreement.