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Outsourcing Service Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the terms and conditions for outsourcing services between a service provider and a customer. The agreement covers essential elements including service scope, performance standards, pricing, data protection, and compliance with UAE regulations. It incorporates specific provisions required under UAE federal laws and ensures alignment with local business practices while addressing key aspects such as service levels, governance, intellectual property rights, and exit management. The document is structured to provide clear obligations and rights for both parties while maintaining compliance with UAE commercial and civil laws.

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What is a Outsourcing Service Agreement?

The Outsourcing Service Agreement is essential for businesses operating in the UAE who wish to engage external service providers for various business functions. This document is particularly relevant in the context of the UAE's growing economy and its position as a regional business hub, where outsourcing arrangements are increasingly common across various sectors. The agreement must comply with UAE federal laws, including the Civil Code, Commercial Transactions Law, and relevant sector-specific regulations. It is designed to protect both parties' interests while ensuring clear service delivery standards, performance metrics, and risk allocation. The document typically includes comprehensive provisions for service delivery, governance, data protection, and exit management, all tailored to align with UAE legal requirements and business practices. Use this agreement when establishing a formal outsourcing relationship for services such as IT, business processes, facilities management, or other operational functions.

What sections should be included in a Outsourcing Service Agreement?

1. Parties: Identification of the contracting parties including full legal names, addresses, and registration details

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided, including service levels and deliverables

5. Term and Renewal: Duration of the agreement and renewal provisions

6. Service Provider Obligations: Detailed responsibilities and commitments of the service provider

7. Customer Obligations: Requirements and commitments from the customer

8. Fees and Payment Terms: Pricing, payment schedule, invoicing, and payment terms

9. Service Levels: Performance standards, KPIs, and measurement criteria

10. Governance and Reporting: Management structure, reporting requirements, and review processes

11. Staff and Resources: Requirements for personnel, facilities, and resources

12. Intellectual Property Rights: Ownership and usage rights of IP created or used during service provision

13. Confidentiality: Protection of confidential information and trade secrets

14. Data Protection: Compliance with UAE data protection requirements and data handling procedures

15. Liability and Indemnification: Limitation of liability and indemnification obligations

16. Force Majeure: Provisions for unforeseen circumstances and force majeure events

17. Termination: Grounds for termination and termination procedures

18. Exit Management: Transition arrangements upon termination

19. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction provisions

20. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Outsourcing Service Agreement?

1. Change Control: Procedures for managing changes to services or agreement terms - include for complex service arrangements

2. Business Continuity: Disaster recovery and business continuity requirements - include for critical services

3. Security Requirements: Specific security protocols and requirements - include for services involving sensitive data or systems

4. Compliance with Specific Regulations: Additional regulatory compliance requirements - include for regulated industries

5. Insurance: Specific insurance requirements - include for high-risk services

6. Parent Company Guarantee: Guarantee from service provider's parent company - include when financial stability is crucial

7. Anti-Bribery and Corruption: Specific anti-corruption provisions - include for government-related contracts or high-value agreements

8. Environmental Requirements: Environmental compliance and sustainability requirements - include for services with environmental impact

What schedules should be included in a Outsourcing Service Agreement?

1. Schedule 1 - Services Description: Detailed specification of services to be provided

2. Schedule 2 - Service Levels and KPIs: Detailed service level agreements and performance metrics

3. Schedule 3 - Pricing and Payment Schedule: Detailed pricing structure, rates, and payment terms

4. Schedule 4 - Implementation Plan: Timeline and milestones for service implementation

5. Schedule 5 - Governance Procedures: Detailed procedures for contract governance and management

6. Schedule 6 - Personnel: Key personnel requirements and responsibilities

7. Schedule 7 - Technical Requirements: Technical specifications and requirements

8. Schedule 8 - Exit Plan: Detailed transition out procedures and requirements

9. Schedule 9 - Data Processing Agreement: Specific terms for handling and processing data

10. Schedule 10 - Business Continuity Plan: Detailed business continuity and disaster recovery procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Publisher

Genie AI

Cost

Free to use

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