This Business Outsourcing Agreement template is designed for use in New Zealand business environments where organizations seek to formalize arrangements for the provision of business services by external providers. It is particularly relevant when establishing long-term strategic partnerships for the delivery of critical business functions or services. The agreement incorporates requirements under New Zealand law, including provisions aligned with the Contract and Commercial Law Act 2017, Privacy Act 2020, and relevant industry regulations. It is structured to address key aspects of outsourcing relationships including service levels, performance management, risk allocation, data protection, and transition arrangements. This document type is essential for organizations looking to effectively manage outsourced services while maintaining appropriate control and oversight of service delivery.
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1. Parties: Identifies and provides details of the contracting parties (service provider and customer)
2. Background: Sets out the context and purpose of the agreement, including the business objectives
3. Definitions and Interpretation: Defines key terms and establishes rules for interpreting the agreement
4. Scope of Services: Defines the services to be provided and any excluded services
5. Term and Renewal: Specifies the initial term, renewal options, and conditions for extension
6. Service Provider Obligations: Details the core obligations, standards, and responsibilities of the service provider
7. Customer Obligations: Outlines the customer's responsibilities and requirements for enabling service delivery
8. Service Levels and Performance: Establishes performance standards, metrics, and measurement methodology
9. Fees and Payment: Details the fee structure, payment terms, and invoicing requirements
10. Governance and Reporting: Establishes management structure, reporting requirements, and meeting schedules
11. Personnel and Resources: Addresses key personnel, staffing requirements, and resource allocation
12. Intellectual Property Rights: Establishes ownership and licenses for IP created or used in service delivery
13. Confidentiality and Data Protection: Covers confidentiality obligations and data security requirements
14. Liability and Indemnities: Sets out liability limitations and indemnification obligations
15. Termination: Details termination rights, process, and consequences
16. Exit Management: Outlines the transition process at agreement end or termination
17. General Provisions: Includes standard legal provisions like notices, assignment, and governing law
1. Business Continuity and Disaster Recovery: Required for critical services or when specific recovery requirements exist
2. Change Control: Needed for complex services likely to require formal change management
3. Regulatory Compliance: Required when services are subject to specific regulatory requirements
4. Security Requirements: Important when handling sensitive data or accessing customer systems
5. Audit Rights: Needed when regular audits or compliance verification is required
6. Anti-Bribery and Corruption: Important for international arrangements or high-risk services
7. Parent Company Guarantee: Required when seeking additional financial security
8. Innovation and Continuous Improvement: Useful for long-term strategic partnerships
9. Environmental and Social Responsibility: Important when sustainability or social impact is a key consideration
1. Service Description: Detailed description of each service component and delivery requirements
2. Service Levels: Comprehensive SLA metrics, measurement methods, and remedies
3. Charges and Pricing: Detailed fee calculations, rate cards, and pricing mechanisms
4. Customer Dependencies: Detailed list of customer-provided items, facilities, and support
5. Key Personnel: Details of key roles, qualifications, and replacement procedures
6. Governance Framework: Detailed governance structure, processes, and escalation procedures
7. Technical Requirements: Technical specifications, standards, and infrastructure requirements
8. Security Standards: Detailed security protocols, requirements, and compliance standards
9. Exit Plan: Detailed transition out procedures, timelines, and responsibilities
10. Business Continuity Plan: Detailed recovery procedures and business continuity requirements
11. Form of Reports: Templates and requirements for regular reporting
12. Approved Subcontractors: List of approved subcontractors and their authorized scope
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