{"id":104118,"date":"2025-04-28T09:23:08","date_gmt":"2025-04-28T09:23:08","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=104118"},"modified":"2025-09-01T13:57:59","modified_gmt":"2025-09-01T13:57:59","slug":"sweden-technology-outsourcing","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/sweden-technology-outsourcing\/","title":{"rendered":"Sweden: Technology Outsourcing"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-104118","comparative_guide","type-comparative_guide","status-publish","hentry","guides-technology-outsourcing","jurisdictions-sweden"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">TM &amp; Partners<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/04\/TM_LOGOTYP_PRIMAR_RGB.png\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">TM &amp; Partners<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/04\/TM_LOGOTYP_PRIMAR_RGB.png\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Technology Outsourcing laws and regulations applicable in Sweden<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\t<div class=\"additional-information\"><p><small><em>This article contains general information regarding outsourcing in Sweden and is intended for informational purposes only. It does not constitute legal advice and should not be relied upon as such.<\/em><\/small><\/p>\n<\/div>\r\n\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Market overview: Please provide a high-level overview of the outsourcing market in your jurisdiction (e.g. who are the key players and in what sectors (public and private) are you seeing outsourcing services being adopted)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Sweden\u2019s outsourcing market is mature and robust, with widespread adoption across both private and public sectors. In the private sector, all types of companies commonly outsource IT and business processes for cost-efficiency and to access specialised skills and services. The market features the major global IT service providers alongside strong Nordic firms. The public sector also engages in IT outsourcing (many authorities and municipalities use private IT contractors), although sensitive government functions tend to be outsourced under stricter controls or kept in-house due to security and transparency requirements. Overall, the Swedish market shows a high level of acceptance of outsourcing, underpinned by a competitive vendor landscape.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Market overview: What is the current attitude of the government and of regulators to the use of outsourcing in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no general regulations addressing all types of outsourcing in Sweden. However, recent legal updates expressly facilitate outsourcing by government authorities while safeguarding confidentiality (an amendment in 2023 to the Public Access to Information and Secrecy Act (Sw. <em>offentlighet- och sekretesslagen<\/em>) clarifies that state authorities can outsource IT operations to private suppliers for technical processing\/storage, as long as sensitive information remains protected). The government\u2019s caution heightened after a scandal in 2017 (where a public authority\u2019s outsourcing led to improper exposure of sensitive data), which led to tighter scrutiny and new rules around security-sensitive outsourcing. Moreover, eSam (Sw. <em>eSamverkansprogrammet<\/em>), a Swedish collaborative initiative among public authorities, is noteworthy in this context. eSam works with promoting effective digital government services and addresses strategic issues in relation to, i.e., outsourcing, to ensure secure and efficient service delivery. In summary, Swedish regulators accept outsourcing as a normal practice but maintain a strong focus on risk management, data protection and national security.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Procurement: Are there specific procurement-related laws or regulations governing outsourcing by public sector or government bodies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes \u2013 public sector outsourcing in Sweden is subject to public procurement laws. Sweden\u2019s procurement framework is based on EU directives and require that government contracts (including IT outsourcing agreements) are awarded through transparent and competitive tender processes.<\/p>\n<p>The key statutes are the Swedish Public Procurement Act (Sw. <em>lagen om offentlig upphandling<\/em>) and the Public Procurement Act within the Supply Sectors (Sw. <em>lagen om upphandling inom f\u00f6rs\u00f6rjningssektorerna<\/em>), which impose mandatory tendering procedures for public authorities when outsourcing services. The Swedish Competition Authority (Sw. <em>Konkurrensverket<\/em>) supervises public procurement. Violations can lead to court proceedings and fines. In practice, this means a government authority must, as a main rule, issue an open procurement process before outsourcing significant IT functions to a vendor selection and that the choice of the supplier must align with procurement rules and any applicable sector-specific requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Procurement: Are there specific procurement-related laws or regulations governing outsourcing by private sector organisations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No \u2013 there are no procurement-specific statutes that apply to private sector outsourcing in Sweden. Private companies are generally free to negotiate and enter into outsourcing contracts at their discretion, subject to sector-specific laws and applicable industry regulations. The terms and procedure for private outsourcing are a matter of commercial negotiations and freedom of contract generally applies. In certain regulated sectors, financial services for example, private companies must notify and\/or seek approval from the applicable supervisory authority prior to outsourcing critical functions. In addition, companies must of course ensure that the agreement fulfils all applicable sector-specific rules as well as other legislation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Laws and Regulations: Are there any other specific laws or regulations that apply to outsourcing? If not, what key general laws and regulations are most relevant?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are certain laws and regulations that apply specifically to outsourcing arrangements for certain sorts of services, sectors and industries. These include, but are not limited to, the EU\u2019s General Data Protection Regulation (GDPR), the Digital Operational Resilience Act (DORA) and the Swedish Act on Information Security for Essential and Digital Services (Sw. <em>lag om informationss\u00e4kerhet f\u00f6r samh\u00e4llsviktiga och digitala tj\u00e4nster<\/em>). Apart from such specific provisions, the parties are generally free to agree on the terms of their choice. However, the parties are bound by sector-specific laws, national contract laws, e.g. the Swedish Contracts Act (Sw. <em>lag om avtal och andra r\u00e4ttshandlingar p\u00e5 f\u00f6rm\u00f6genhetsr\u00e4ttens omr\u00e5de<\/em>), and general contracting principles.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Laws and Regulations: Do any specific regimes apply to outsourcing arrangements in particular sectors (e.g. financial services)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Sweden has various regulations that applies to outsourcing arrangements relevant in several sectors, such as the financial and health care sectors.<\/p>\n<p>Regulations on outsourcing are found in several areas of financial legislation, many of them at an EU level. The Swedish Financial Supervisory Authority (Sw.<em> Finansinspektionen<\/em>) issues rules and guidance applicable to outsourcing arrangements. Furthermore, the European Banking Authority has issued guidelines on outsourcing that are applicable in Sweden. More recently, DORA has also been adopted, which concerns requirements for financial institutions regarding information and communication technology and third-party providers of such services.<\/p>\n<p>Common elements in the above-mentioned regulations are, inter alia, that the customer must retain certain control of the services\/information security and be able to ensure that the supplier\u2019s services are in compliance with applicable law and the outsourcing agreement. Several regulations include requirements such as having relevant procedures for risk management, the possibility to modify and control the outsourced services as well as contingency and exit plans.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Competition law: To what extent might outsourcing arrangements require notification or approval under merger control rules?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Outsourcing arrangements typically do not require merger notification and approval, unless the outsourcing effectively transfers a business such that it qualifies as a merger under competition law. In practice, only large-scale outsourcing transactions involving the transfer of a substantial business unit are typically covered by merger control rules. Routine outsourcing contracts for services alone should not trigger merger notification and approval from a competition law perspective.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Competition law: To what extent are the terms of outsourcing agreements the subject of restrictions under competition law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Outsourcing agreements must comply with competition law, meaning that their terms cannot unlawfully restrain competition. Swedish competition law (largely mirroring EU rules) prohibits agreements that have anti-competitive objects or effects. Outsourcing agreements between businesses should therefore be reviewed for any problematic clauses in this regard.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Intellectual property (\u2018IP\u2019) rights: What IP (registrable and non-registrable) is typically created in the course of an outsourcing arrangement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Depending on the nature of the services, outsourcing might result in the creation of IP rights, for instance in respect to system development. In such outsourcing agreements, the most common IP created is copyright in software. If the supplier develops software for the client, those deliverables may be protected by copyright as original works. Related materials like technical documentation, system designs, and user manuals may also be subject to copyright. If the engagement involves innovation or R&amp;D (for example, developing new technology or products), patentable inventions or design rights might be created.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Intellectual property (\u2018IP\u2019) rights: In an outsourcing arrangement, would any contractual terms or formal steps be required to vest supplier-created IP in the customer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes \u2013 it is crucial to include contractual terms to vest or license any supplier-created IP to the customer, since Swedish default law does not automatically transfer ownership of IP to the customer in an outsourcing.<\/p>\n<p>Under Swedish law, the creator or employer of the creator (here, the supplier) would initially own any IP rights in works or inventions they develop. Therefore, if the client expects to own the IP arising from the outsourcing, the contract must explicitly provide for an assignment of those IP rights from the supplier to the customer. Such an assignment is typically done via a written clause in the outsourcing agreement.<\/p>\n<p>Swedish law permits assignment of IP through contract, and certain IP rights have formal requirements. For instance, assignments of EU trademarks must be in writing. In many outsourcing arrangements, if outright transfer is not agreed, the alternative is to grant the customer a broad license to use the supplier\u2019s IP for its business. Either way, clearly drafted contractual provisions are required to ensure that the customer obtains the intended IP rights to use and exploit any IP created by the supplier during the outsourcing.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Intellectual property (\u2018IP\u2019) rights: How are confidential information, know-how and trade secrets protected in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Sweden, trade secrets are protected by legislation. The primary law is the Swedish Trade Secrets Act (Sw. <em>lagen om f\u00f6retagshemligheter<\/em>), which implements the EU Trade Secrets Directive. This act provides remedies against misappropriation of trade secrets. If an outsourcing provider improperly discloses or uses the customer\u2019s trade secrets, the customer may under certain conditions seek injunctions and damages under the act. In practice, outsourcing contracts contain strict confidentiality clauses, contractually obligating the supplier (and its personnel\/subcontractors) to use the client\u2019s confidential information only for the intended purposes and to keep it confidential. Know-how (practical knowledge, processes, and methods) that a company shares with the supplier should be included as \u201cconfidential information\u201d under such clauses to ensure proper protection.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Data: What is the regime in your jurisdiction for regulating the protection and processing of personal data and what are the main implications for outsourcing arrangements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Swedish legal provisions for data protection and privacy are primarily governed by EU law, where the main regulation is the GDPR.<\/p>\n<p>The GDPR lays down rules for the processing of personal data and is applicable on any operation or set of operations which is performed on personal data, inter alia, collection, storage and destruction of personal data. Sweden has decided on supplementary provisions concerning data protection, of which the main provisions are regulated in the Act containing supplementary provisions to the EU General Data Protection Regulation (Sw. <em>lag med kompletterande best\u00e4mmelser till EU:s dataskyddsf\u00f6rordning<\/em>). For example, this act contains provisions about the processing of certain categories of personal data, such as personal identity numbers and personal data relating to criminal convictions and offences. The supplementary Swedish framework for data protection also contains sector-specific legislation with provisions regulating the processing of personal data, for example in the health care and financial sector.<\/p>\n<p>To the extent that outsourcing arrangements involve the processing of personal data, the GDPR imposes different requirements on the parties in such arrangements, both in terms of contractual arrangements and the liabilities of the parties. Therefore, the GDPR requires an investigation of the division of roles between the customer and the supplier before entering an outsourcing arrangement where personal data will be processed. Depending on the assessment, a data processing agreement and\/or a data sharing agreement may be necessary to establish the requirements and rights that apply between the parties with regard to the processing of personal data.<\/p>\n<p>Where the supplier is regarded as a processor and the customer as a controller, the GDPR places certain obligations on the customer. The controller has a general responsibility to take appropriate technical and organizational measures to ensure and be able to demonstrate that the processing is carried out in accordance with the GDPR. Therefore, the controller must ensure that the supplier has adopted sufficient technical and organizational security measures, and that the personal data will be processed in accordance with the GDPR.<\/p>\n<p>Another implication of the GDPR for outsourcing arrangements is the restrictions for transferring personal data to a third country outside the EU\/EEA. Transfer of personal data outside the EU\/EEA is generally permitted under certain circumstances, e.g. if the European Commission has assessed that the third country ensures an adequate level of data protection, or if the controller has implemented appropriate safeguarding measures. In relation to transfers of personal data to the United States, the recipient is required to be subject to the EU-US Data Privacy Framework for the transfer to be admittable. Swedish companies closely monitor recent developments in the United States concerning data transfers.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Data: What is the regime in your jurisdiction for regulating the processing of non-personal data and what are the main implications for outsourcing arrangements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The use of non-personal data is governed under several Swedish laws and regulations, including but not limited to, the Swedish Act on Information Security for Essential and Digital Services (Sw. <em>lag om informationss\u00e4kerhet f\u00f6r samh\u00e4llsviktiga och digitala tj\u00e4nster<\/em>) and the Swedish Public Access to Information and Secrecy Act (Sw. <em>offentlighets- och sekretesslagen<\/em>).<\/p>\n<p>Furthermore, several regulations have recently been introduced at EU level that impose requirements on, among other things, how such data may be used and what restrictions and areas of use that may or may not be permitted. DORA and the EU Data Act are key statutes, which have implications for outsourcing arrangements.<\/p>\n<p>The EU Data Act is a cross-sectoral legislation establishing principles and guidelines that apply to all sectors. The aim of the Data Act is to, inter alia, mitigate contractual imbalances in regard to data sharing and enable customers to change suppliers of data-processing services. The Data Act regulates both personal and non-personal data, with implications for outsourcing arrangements. The most significant implication in terms of outsourcing may be found in chapter IV of the Data Act on unfair contractual terms, which include several provisions protecting small and medium-sized enterprises against unfair contractual terms imposed on them. The Data Act will in practice become applicable as of September 2025. However, some rules of the regulations will become applicable later.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Cyber: Does your jurisdiction have specific cybersecurity legislation or regulations and what are the main implications for outsourcing arrangements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Requirements related to cybersecurity are imposed and governed through several laws and regulations, including but not limited to, the GDPR, the Swedish Act on Information Security for Essential and Digital Services (Sw. <em>lag om informationss\u00e4kerhet f\u00f6r samh\u00e4llsviktiga och digitala tj\u00e4nster<\/em>) and DORA. The GDPR contains several provisions imposing adequate cyber security-related measures regarding processing of personal data. Specific requirements in the context of an outsourcing arrangement are normally handled in the framework of a data processing agreement or a cyber security requirements appendix to the outsourcing contract, where the parties agree on the technical and organizational measures to be taken. The NIS directive is implemented into Swedish law by the Act on Information Security for Essential and Digital Services, while the NIS2 directive is expected to be implemented by the end of 2025. The regulations impose obligations on certain essential operators and suppliers within explicitly defined areas such as digital infrastructure and banking. The new NIS2 directive will involve ensuring that the requirements imposed through the regulations are perceived throughout supply chains and may require ensuring clear requirements in contracts with suppliers.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Technologies: To what extent are certain technologies commonly used in outsourcing arrangements (e.g. artificial intelligence, robotic process automation, cloud computing and blockchain\/distributed ledger technologies) the subject of specific regulations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>AI and automation are widely used in Sweden, and we have seen an increase of these elements in outsourcing arrangements. Cloud services are also very common. Currently, Sweden does not have technology-specific regulations that directly target the use of AI, robotic process automation, cloud computing, blockchain or similar in outsourcing arrangements. However, there are EU regulations that must be considered in this regard. For example, the AI Act, GDPR and DORA. Notably, public authorities in Sweden have issued guidance on cloud outsourcing. For example, the Swedish Financial Supervisory Authority (Sw. <em>Finansinspektionen<\/em>) follows the European Banking Authority\u2019s guide on the outsourcing of cloud services, and the Swedish Civil Contingencies Agency (Sw. <em>Myndigheten f\u00f6r samh\u00e4llsskydd och beredskap<\/em>) has recommended best practices for cloud security in outsourcing.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Employment law: Do your jurisdiction\u2019s employment laws and regulations have specific implications for outsourcing arrangements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Swedish law there are, in general, no labor law provisions that specifically regulate outsourcing. The primary law is the Swedish Employment Protection Act (Sw. <em>lag om anst\u00e4llningsskydd<\/em>). An outsourcing arrangement can under certain situations entail a transfer of employees. The provisions under Swedish law governing such transfers are extensive and are regulated through, inter alia, the Swedish Employment Protection Act, ensuring that the employees\u2019 rights are as minimum the same as EU regulations on the matter. It is common that the parties, when necessary, enter into a separate transfer of employees\u2019 agreement in relation to such transfer, if that is found to be the case. It is also common that the parties in an outsourcing arrangement agree that the supplier commits to the responsibilities for the employees\u2019 rights. Furthermore, outsourcing may trigger an obligation to inform the relevant unions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Employment law: How are employees transferred under an outsourcing arrangement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The transfer of employees is regulated through, inter alia, the Swedish Employment Protection Act (Sw. <em>lag om anst\u00e4llningsskydd<\/em>) which is based on the European Council Directive 2001\/23\/EC. There are several criteria that need to be fulfilled for an arrangement to constitute a transfer of an undertaking or business (or part of thereof). The consequence of the arrangement being considered a transfer of employees within the meaning of that provision is, inter alia, that the new employer automatically takes over the responsibility for the contractual obligations and terms of the former employer in relation to the employee, including obligations that have arisen prior to the transfer. A transfer of employees is normally agreed on by entering into a separate Transfer of Employees Agreement, regulating the terms for costs related to employment and liabilities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Tax: What are the general tax considerations in your jurisdiction with implications for outsourcing arrangements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Outsourcing arrangements can give rise to tax considerations. In Sweden it is advisable to consult with a tax specialist in case of any tax considerations, to ensure that the specific circumstances for the outsourcing does not give rise to any unexpected tax consequences.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">ESG: Are there any specific ESG requirements in your jurisdiction (e.g. relating to carbon emissions, modern slavery, anti-bribery\/corruption, waste electronic equipment, etc.), and what are the implications of these for outsourcing arrangements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Sweden has a strong culture of corporate social responsibility, but there is currently no general Swedish law that imposes specific ESG requirements uniquely on outsourcing contracts. The EU\u2019s Corporate Sustainability Reporting Directive (CSRD) has been implemented through amendments to the Swedish Annual Accounts Act (Sw. <em>\u00e5rsredovisningslagen<\/em>). CSRD aims to enhance corporate sustainability reporting across the EU, requiring certain companies to provide detailed and standardised sustainability disclosures.<\/p>\n<p>In practice, ESG considerations often find their way into outsourcing through contractual clauses or procurement criteria. Swedish organisations (especially public-sector bodies and large corporations) often require suppliers to adhere to its codes of conduct, which address matters such as labour standards, anti-corruption, and environmental performance. Public procurement rules, in fact, allow authorities to include social and environmental criteria in tenders and to exclude bidders convicted of offenses like corruption or environmental crimes.<\/p>\n<p>Anti-corruption is strictly enforced in Sweden under general law (bribery is criminal, and a supplier engaged in corruption can be blacklisted from public contracts). On the environmental side, many companies voluntarily incorporate sustainability requirements or KPI\u2019s into outsourcing contracts (such as requirements to reduce carbon footprint or use green energy in providing services), even though not mandated by statute. Looking ahead, EU-level developments (the Green Claims Directive for instance) will boost ESG requirements. Such regulations will force Swedish firms to carefully vet and manage ESG risks in their supply chains and outsourcing relationships.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Cross-border: Do cross-border or multi-jurisdictional outsourcing arrangements raise any specific challenges or concerns in your jurisdiction (e.g. relating to export control or data transfer laws)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes \u2013 cross-border outsourcing from Sweden can raise particular legal challenges, especially regarding data transfer and security\/export controls.<\/p>\n<p>Swedish companies outsourcing IT or the processing of personal data to providers outside of the EU\/EEA must ensure GDPR compliance to lawfully transfer personal data. Another challenge is national security and secrecy laws. Sweden\u2019s Security Protection Act (Sw. <em>s\u00e4kerhetsskyddslagen<\/em>) and related regulations restrict outsourcing of security-sensitive activities or classified information to foreign entities. If an outsourcing arrangement would give a foreign provider access to classified government data or critical infrastructure systems, the Swedish entity must conduct a security assessment and must often sign a security protection agreement with the supplier. Export controls and sanctions can also come into play. If the outsourcing involves transferring controlled technology or software (for example, encryption technology or military-related tech) to another country, Swedish and EU export control laws require obtaining export licenses.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Liability: Are there limits on what liabilities can be contractually excluded in your jurisdiction (e.g. are there certain liabilities which cannot be limited or excluded by law)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Commercial parties are under Swedish legislation generally free to exclude liability. It is common practice to contractually exclude liability for indirect damage, including loss of profit. In certain cases when the limitation of liability is, inter alia, unreasonably extensive, the limitation of liability can be deemed as unreasonable and be adjusted or set aside in its entirety by a court on the basis of the Swedish Contracts Act (Sw. <em>lag om avtal och andra r\u00e4ttshandlingar p\u00e5 f\u00f6rm\u00f6genhetsr\u00e4ttens omr\u00e5de<\/em>).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Disputes and enforcement: How are contractual disputes in outsourcing arrangements typically resolved in your jurisdiction and what remedies are commonly available in relation to contractual breaches?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The parties are generally free to negotiate and decide on the type of dispute resolution in the agreement. Arbitration is the main method for resolving commercial disputes between commercial parties. Swedish parties generally choose arbitration subject to the Arbitration Rules of the SCC Arbitration Institute. Model clauses are made available on the SCC\u2019s website. Disputes under outsourcing contracts may also be subject to litigation (court proceedings), which are generally public in Sweden and usually entails a slower process. The parties also have the possibility to apply for interim measures. However, in Swedish courts, interim measures are normally only granted if the applicant provides some sort of security.<\/p>\n<p>The parties are free to negotiate and decide on remedies in case of contractual breaches. The remedies available to a party are typically stated in the contract. In addition to claiming damages for losses incurred, the parties commonly also agree on remedies such as remedy for defects, termination, suspension, withholding of payments, liquidated damages as well as, in some cases, such as critical outsourcing, a party\u2019s right of interpretation in cases of contractual disputes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Disputes and enforcement: What, if any, other enforcement measures are typically relevant to outsourcing arrangements (e.g. regulatory fines and other sanctions)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no general enforcement measures specifically for outsourcing arrangements. However, considering the types of services typically outsourced, outsourcing arrangements are often subject to various enforcement measures, particularly in regulated sectors such as finance and data protection. The Swedish Financial Supervisory Authority (Sw.<em> Finansinspektionen<\/em>) enforces compliance in the financial sector, including the imposition of fines, supervisory actions, and potential license revocations. The Swedish Data Protection Authority (Sw.<em> Integritetsskyddsmyndigheten<\/em>) enforces regulations under the GDPR, with sanctions, e.g. fines and corrective orders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3955<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/104118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=104118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}