Legal Adviser/Legal Consultant’s role in Software Industry

Legal Adviser/Legal Consultant’s role in Software Industry

A Legal Adviser/Legal Consultant plays an important role in Software Industry.  From the inception of ‘Request for Proposal’ stage to completion of a ‘Project’, the role bears enormous responsibility.

The stages of a ‘contract’ in software industry are:-

(i)                ‘Request for proposal’ : It is the stage when a project is initiated.  When a client sends his ‘RFP’, concerned technical analysis is completed by the Team Head and a formal Proposal is sent to the client.  After modification/acceptance of ‘RFP’ by the parties, formal contract building stage begins.

(ii)              ‘Contract Drafting’ :     Based on the approved ‘RFP’, a Draft ‘Master Services Agreement’ along ‘Work Order’ is prepared.  The ‘MSA’ (Master Services Agreement) is an Agreement between the parties to carry out the ‘project’ described as per ‘Work Order’.  They are the primary documents pertaining to a project.  Normally, a ‘MSA’ is an agreement between 2 or more parties towards mutual co-operation to carry –out one or several ‘work order/s’.  General terms of agreement are described in a ‘MSA’.  The ‘Work Order’ describes about a particular project/work.  It denotes the ‘Team’, ‘Work-description’, ‘supervision’, ‘responsibility’, ‘trouble-shooting’/’escalation points’.  Usually, a ‘MSA’ once executed between the parties, it caters to create as many ‘WOs’ on the basis of ‘MSA’, thus, the ‘Master’ word is used to denote the Service Agreement.  A ‘WO’ describes about a particular ‘project/work’. 

(iii)             ‘Record-keeping’ :  Once a ‘Draft’ of ‘MSA’ and ‘WO’ are approved by the parties, a formal contract is inked.   Since the MSA and WO contain the contractual terms and ‘work description’ and other essential details, proper record-keeping is essential to track the work-process.  In case of conflict, these records are referred to interpret and address the issues between the parties. 

Liaison with Finance/Accounts Department

To ensure proper fund-flow from a ‘project’, and accurate ‘accounting’, the co-ordination between Legal and Finance/Accounts Team is essential.  Important information about the ‘project’ must be shared between them to ensure accountability.  Any deviation from the ‘contractual terms’ need to be escalated at appropriate stage.  Timely Remedial/recovery action can then be initiated ab-initio.

Legal action in case of dispute

In a well organized and effectively managed concern, the need for ‘Legal Remedy’ may not arise.  If any inevitable circumstance arise, the ‘conflict issues’ need to be addressed at appropriate levels.  Upon failure of other alternatives, ‘legal remedy’ may be resorted-to.  Legal Remedy, like the ‘panic button’ or ‘parachute’ shall be utilized only after exhausting all available modes of communication to address the issues amicably.

A seasoned, matured Legal Adviser can lead a Software Industry to impeccable growth.