{"id":141660,"date":"2026-05-11T14:07:14","date_gmt":"2026-05-11T14:07:14","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=141660"},"modified":"2026-05-11T14:07:14","modified_gmt":"2026-05-11T14:07:14","slug":"austria-technology-outsourcing","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/austria-technology-outsourcing\/","title":{"rendered":"Austria: Technology Outsourcing"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-141660","comparative_guide","type-comparative_guide","status-publish","hentry","guides-technology-outsourcing","jurisdictions-austria"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Grama Schwaighofer Vondrak Rechtsanw\u00e4lte GmbH<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/05\/GSV-logo.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Grama Schwaighofer Vondrak Rechtsanw\u00e4lte GmbH<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/05\/GSV-logo.jpg\"\/><\/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 Austria<\/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\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 class=\"GSVTextEinzug\">Outsourcing is an established technology in Austria. It has been implemented throughout multiple years.<\/p>\n<p class=\"GSVTextEinzug\">Outsourcing is used in the framework of IT outsoucing, but also business process outsourcing.<\/p>\n<p class=\"GSVTextEinzug\">While obviously large international providers offer their services, there are smaller, perhaps national parties, particularly in niche areas.<\/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 class=\"GSVTextEinzug\">Particularly in the financial sectors, also on the basis of international regulations, outsourcing has become somewhat standardised and follows strict rules. Regulators acknowledge the need to outsourcing, have become equipped to deal with the implications and to apply the necessary safeguards.<\/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 class=\"GSVTextEinzug\">The general procurement laws govern outsourcing by public sector bodies in Austria. The primary legislation is the Federal Public Procurement Act 2018 (Bundesvergabegesetz 2018 \u2013 BVergG 2018). While the term &#8220;outsourcing&#8221; is not a distinct legal category within this act, it typically falls under the definition of a &#8220;service contract.&#8221; Therefore, when a public body intends to outsource services, it must generally conduct a formal procurement procedure in accordance with the Federal Public Procurement Act.<\/p>\n<p class=\"GSVTextEinzug\">Often, in the context of IT Outsourcing the Republic of Austria applies standardised general terms and conditions ((AVB- IT\/Projekte)<\/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 class=\"GSVTextEinzug\">There are no specific procurement-related laws that govern outsourcing by private sector organisations in the same way the Federal Public Procurement Act governs the public sector.<\/p>\n<p class=\"GSVTextEinzug\">Outsourcing arrangements between private sector entities are governed by general principles of Austrian contract law. The parties are free to negotiate the terms of their agreement, subject to mandatory legal provisions (e.g., in data protection or labour law).<\/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 class=\"GSVTextEinzug\">General Laws: While not detailed in the provided sources, any outsourcing agreement must comply with general legal frameworks, most notably:<\/p>\n<p class=\"GSVTextEinzug\">General Civil Code (Allgemeines B\u00fcrgerliches Gesetzbuch &#8211; ABGB): This forms the basis of contract law, governing issues like liability, warranties, and termination.<\/p>\n<p class=\"GSVTextEinzug\">Commercial Code (Unternehmensgesetzbuch &#8211; UGB): The Commercial Code will apply for certain legal issues between undertakings.<\/p>\n<p class=\"GSVTextEinzug\">Data Protection Law: The EU General Data Protection Regulation (GDPR) and the Austrian Data Protection Act (Datenschutzgesetz &#8211; DSG) impose strict requirements, if the outsourcing involves the processing of personal data.<\/p>\n<p class=\"GSVTextEinzug\">Labour Law: If employees are transferred as part of the outsourcing arrangement, specific provisions on the transfer of undertakings apply, protecting employees&#8217; rights.<\/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 class=\"GSVTextEinzug\">Yes, a detailed and specific legal regime applies for certain sectors<\/p>\n<p class=\"GSVTextEinzug\">Credit institutions are governed by the Austrian Banking Act (BWG). Credit institutions must take appropriate measures when outsourcing essential banking functions to service providers. A function is considered essential if its inadequate performance or failure to perform would impair the continuous compliance with the credit institution&#8217;s obligations under the law, its solvency, liquidity, or the soundness or continuity of its banking services. The intended outsourcing of essential banking functions must be notified in writing to the Financial Market Authority (FMA) before the conclusion of the respective agreement. This is a notification requirement, not an approval requirement. Outsourcing must not lead to a delegation of the responsibilities of the management board, alter the relationship and obligations of the credit institution towards its business partners and customers, or lead to the removal or a change of the other conditions under which the license was granted to the credit institution.<\/p>\n<p class=\"GSVTextEinzug\">The regulations for insurance undertakings are found in the Insurance Supervision Act 2016 (VAG 2016). In contrast to banks, the outsourcing of critical or important operational functions or activities is subject to prior approval by the FMA, unless the service provider is itself an insurance or reinsurance undertaking.<\/p>\n<p class=\"GSVTextEinzug\">The requirements for investment firms are regulated in the Securities Supervision Act 2018 (WAG 2018). An investment firm must ensure that when relying on a third party (service provider) for the performance of operational functions which are essential for the provision of continuous and satisfactory services to clients and the performance of investment activities, it takes reasonable steps to avoid undue additional operational risk. The outsourcing of essential operational functions must not be undertaken in such a way as to materially impair the quality of its internal control and the ability of the FMA to monitor the firm&#8217;s compliance with all its obligations.<\/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>An outsourcing arrangement may qualify as a notifiable concentration under Austrian merger control rules. First, where an outsourcing arrangement involves not merely the purchase of services but the transfer of an entire business unit with associated substantial assets (e.g., personnel, customer base, production facilities, know-how), this may constitute the acquisition of (a substantial part of) an undertaking. Secondly, outsourcing agreements may qualify as an agreement whereby an undertaking acquires rights to operate another undertaking&#8217;s business. In particular, more comprehensive outsourcing arrangements could fall under this category.<\/p>\n<p>A notifiable concentration must not be implemented before clearance by the competition authorities (standstill obligation). Contracts that violate this prohibition are void.<\/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 class=\"GSVTextEinzug\">The substantive provisions of outsourcing contracts are subject to general competition law rules, particularly the cartel prohibition and the prohibition of abuse of a dominant position.<\/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 class=\"GSVTextEinzug\">While typically no IP right is created per se in the course of an outsourcing arrangement, under certain circumstances copyrighted material, in particular computer programs might be created by the outsourcing provider.<\/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 class=\"GSVTextEinzug\">As a general rule, any IP right is firstly owned by the creator of the protected material, which presumably would be the outsourcing provider. Hence, in order to transfer the benefit of the IP to the outsourcing customer, the IP right must be transferred or licensed to the customer. This would require an agreement to this respect.<\/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 class=\"GSVTextEinzug\">Confidential information can legally be protected by contractual arrangement and typically outsourcing agreements would contain specific provisions to this respect. These provisions would also encompass the definition of confidential information or exceptions.<\/p>\n<p class=\"GSVTextEinzug\">Similarly, the use of know-how can \u2013 and will usually, be restricted by similar provisions.<\/p>\n<p class=\"GSVTextEinzug\">Austria implemented the EU Trade Secrets Directive in the Unfair Competition Act (UWG), creating a comprehensive regime for the protection of trade secrets. It is noteworthy that these provisions require that certain protective measures are put in place to uphold the secrecy obligations.<\/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 class=\"GSVTextEinzug\">The General Data Protection Regulation is the main law governing the protection and processing of personal data, also in the context of an outsourcing agreement. Subject to the specific situation, the outsoucing provider might be classified as a data processor under the GDPR and therefore the parties are required to enter into an agreement to that respect.<\/p>\n<p class=\"GSVTextEinzug\">The GDPR provides for specific requirements and safeguards in respect of the transfer of personal data, which must be adhered to. Additional requirements apply to recipients outside the European Union (and certain other jurisdictions or frameworks). Hence, in the context of a cross-border outsourcing agreement with a provider in these other jurisdictions, additional requirements need to be satisfied.<\/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 class=\"GSVTextEinzug\">Austria does not have comprehensive specific legislation regulating the processing of non-personal data comparable to the GDPR for personal data. The regime for non-personal data is primarily governed by general contract law. Non-personal data that constitutes confidential business information may qualify for protection as a trade secret.<\/p>\n<p class=\"GSVTextEinzug\">Depending on the specifics of the services, an outsourcing arrangement may fall under the scope EU Data Act.<\/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 class=\"GSVTextEinzug\">Austria has transposed the EU NIS2 Directive (Netz- und Informationssystemsicherheitsgesetz 2026 \u2013 NISG 2026), which establishes cybersecurity requirements for essential and important entities. Outsourcing providers may be subject to the obligations of this act in respect of risk management measures and incident reporting. Any outsourcing customer, which is subject to NISG must adhere to the supply chain risk management. Thus, it must evaluate the cybersecurity capabilities and compliance status of potential outsourcing providers before contracting and ensure that the outsourcing provider implements appropriate cybersecurity measures equivalent to its own.<\/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>Technologies may be subject to the EU AI Act,<\/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>Austrian employment law has significant and specific implications for outsourcing arrangements, primarily governed by the provisions on the transfer of undertakings, businesses, or parts of businesses (<em>Betriebs\u00fcbergang<\/em>). These rules are found in the Labour Contract Law Adaptation Act (AVRAG) and are designed to protect employees&#8217; rights when the business they work for changes ownership or is transferred to another entity, such as an outsourcing provider. The relevant provisions include an obligation to notify the employees in advance.<\/p>\n<p>The core principle is that if an outsourcing arrangement qualifies as a transfer of an undertaking, the employment relationships of the affected employees are automatically transferred to the new employer (the outsourcing provider).<\/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 class=\"GSVTextEinzug\">Employees are transferred by operation of law. This process is automatic and does not require the consent of the individual employees or the conclusion of new employment contracts.<\/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 class=\"GSVTextEinzug\">The primary consideration for a foreign service provider is whether its activities under an outsourcing agreement create a permanent establishment in Austria,<\/p>\n<p class=\"GSVTextEinzug\">For the Austrian client making payments to the foreign service provider, withholding tax obligations are to be considered.<\/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 class=\"GSVTextEinzug\">The most significant ESG requirements stem from the implementation of the EU&#8217;s Corporate Sustainability Reporting Directive (CSRD) into Austrian law, primarily through the Austrian Commercial Code (Unternehmensgesetzbuch &#8211; UGB). These ESG requirements have direct and significant implications for outsourcing relationships as in order to comply with their reporting duties, companies must gather extensive information about their entire value chain. This includes data from suppliers and outsourced service providers on topics like carbon emissions, labour practices, and human rights.<\/p>\n<p class=\"GSVTextEinzug\">Outsourcing agreements will increasingly need to incorporate clauses that address ESG matters. These may include obligations for the service provider to: (i) provide specific ESG-related data, (ii) adhere to the client&#8217;s code of conduct regarding environmental standards, labour rights, and anti-corruption, (iii) co-operate in audits and assessments related to sustainability and\/or (iv) implement measures to mitigate identified adverse ESG impacts.<\/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 class=\"GSVTextEinzug\">Yes, cross-border and multi-jurisdictional outsourcing arrangements raise significant and specific challenges in Austria, primarily in the areas of data protection and export controls for goods. Depending on the other jurisdiction, the GDPR may require additional safeguards to be satisfied.<\/p>\n<p class=\"GSVTextEinzug\">Possibly, regulations on technology export may apply.<\/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 class=\"GSVTextEinzug\">Austrian law places significant and multi-layered limits on the contractual exclusion or limitation of liability. A contractual clause attempting to do so will be assessed based on the degree of fault and the type of damage. Also, it is relevant, whether the clause is part of general terms and conditions or was individually negotiated.<\/p>\n<p class=\"GSVTextEinzug\">A contractual waiver of liability for intentionally caused harm is fundamentally void as it violates good morals.<\/p>\n<p class=\"GSVTextEinzug\">While not prohibited by a specific statute, a complete exclusion of liability for gross negligence in GTCs could be considered void, as it could be &#8220;grossly disadvantageous&#8221; to the other party. Also in the context of GTCs, an exclusion of liability for slight negligence is invalid, if the damage results from the breach of a main contractual obligation.<\/p>\n<p class=\"GSVTextEinzug\">While potentially less relevant in the context of an outsourcing arrangement, liability for causing personal injury (death or bodily harm) cannot be excluded or limited, not even for slight negligence.<\/p>\n<p class=\"GSVTextEinzug\">A general exclusion clause is also interpreted narrowly and will not cover damages that were entirely unforeseeable or atypical for the specific contractual relationship.<\/p>\n<p class=\"GSVTextEinzug\">Certain mandatory statutory liability regimes cannot be contractually excluded, the most prominent example is the liability for defective products under the Product Liability Act.<\/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 class=\"GSVTextEinzug\">Contractual disputes in outsourcing arrangements are typically resolved through either state court litigation or arbitration, with the specific method being determined by the contract. Particularly for larger and\/or international transactions, arbitration might be the choice.<\/p>\n<p class=\"GSVTextEinzug\">The primary remedy is the right to demand that the breaching party performs its contractual obligations as agreed. The non-breaching party can sue for specific performance.<\/p>\n<p class=\"GSVTextEinzug\">A claim for damages requires that the breaching party acted with\u00a0fault\u00a0(negligence or intent). Damages can be claimed either alongside other remedies or as a standalone remedy. Outsourcing agreements frequently include contractual penalties for specific breaches, such as failure to meet service levels (SLAs) or delivery deadlines. A key feature of Austrian law in this respect is the court&#8217;s right to reduce a penalty that is proven to be &#8220;excessive&#8221;. This right to challenge cannot be waived in advance.<\/p>\n<p class=\"GSVTextEinzug\">If a party is in default, the other party can set a reasonable grace period for performance. If the defaulting party fails to perform within this period, the non-breaching party is entitled to terminate the contract. In practice, this remedy might be the \u201clast resort\u201d for the outsourcing customer, as it might bring the relationship to a sudden end with the need to swiftly find and implement a replacement.<\/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>DISCLAIMER: Please note that the above is a high level summary of certain provisions of Austrian law. It is not possible to convey the complexity of these provisions herein and the implementation of any outsourcing arrangement requires proper legal advice.<\/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\">2767<\/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\/141660","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=141660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}