This Outsourcing Agreement template is designed for use in Canadian business transactions where one organization (the customer) wishes to transfer responsibility for certain business functions or services to an external service provider. The agreement is particularly relevant in today's business environment where companies increasingly focus on core competencies while outsourcing peripheral or specialized functions. It incorporates essential elements required under Canadian federal and provincial laws, including privacy legislation (PIPEDA), employment standards, and industry-specific regulations. The document provides comprehensive coverage of service levels, performance metrics, data protection, intellectual property rights, and risk allocation, while maintaining flexibility to accommodate various business contexts and industry requirements. It is structured to protect both parties' interests while ensuring clear accountability and governance frameworks for the outsourcing relationship.
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1. Parties: Identification of contracting parties and their legal status
2. Background: Context of the agreement and business objectives
3. Definitions: Defined terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided
5. Term and Renewal: Duration of agreement and renewal provisions
6. Service Levels: Performance standards and measurement criteria
7. Charges and Payment: Pricing, payment terms, and invoicing procedures
8. Personnel and Resources: Staff requirements, qualifications, and resource allocation
9. Governance and Management: Oversight structure, reporting, and communication protocols
10. Data Protection and Privacy: Compliance with PIPEDA and other privacy laws
11. Confidentiality: Protection of confidential information
12. Intellectual Property Rights: Ownership and licensing of IP
13. Warranties and Representations: Standard warranties and service guarantees
14. Liability and Indemnification: Risk allocation and liability limitations
15. Termination: Termination rights and procedures
16. Exit Management: Transition arrangements upon termination
17. General Provisions: Standard boilerplate clauses
1. Change Control: Procedures for managing changes to services or agreement, recommended for complex or long-term arrangements
2. Business Continuity: Disaster recovery and business continuity requirements, essential for critical services
3. Security Requirements: Specific security protocols and standards, important for handling sensitive data
4. Regulatory Compliance: Industry-specific regulatory requirements, necessary for regulated sectors
5. Key Personnel: Provisions regarding essential staff members, useful for service-critical roles
6. Benchmarking: Provisions for market comparison of services and prices, valuable for long-term contracts
7. Parent Company Guarantee: Additional financial security, recommended when dealing with subsidiaries
8. Anti-Corruption Compliance: Specific anti-corruption provisions, important for international arrangements
9. Force Majeure: Extended provisions for unforeseen events, recommended for critical services
1. Service Description Schedule: Detailed technical and operational specifications of services
2. Service Levels and KPIs: Detailed performance metrics and measurement methodologies
3. Pricing and Payment Schedule: Detailed pricing models, rates, and payment terms
4. Transition Plan: Detailed plan for service transition and implementation
5. Personnel Schedule: Key personnel, roles, responsibilities, and qualifications
6. Security Requirements: Detailed security protocols and compliance requirements
7. Data Processing Agreement: Detailed data handling and privacy requirements
8. Business Continuity Plan: Detailed disaster recovery and continuity procedures
9. Exit Management Plan: Detailed procedures for contract termination and service transfer
10. Approved Subcontractors: List of approved third-party service providers
11. Form of Change Order: Template for documenting and approving changes
Relevant legal definitions
Acceptance Criteria
Affiliate
Agreement
Applicable Law
Background IP
Business Day
Business Hours
Change Control Procedure
Charges
Commencement Date
Confidential Information
Contract Year
Customer
Customer Data
Customer Materials
Deliverables
Delivery Location
Disaster Recovery Plan
Documentation
Effective Date
Exit Plan
Force Majeure Event
Good Industry Practice
Governance Body
Initial Term
Intellectual Property Rights
Key Personnel
Material Breach
Milestone
Notice
Personal Information
Personnel
Project Plan
Regulatory Requirements
Renewal Term
Reports
Service Credits
Service Levels
Services
Service Provider
Service Provider System
Service Recipient
Specifications
Statement of Work
Subcontractor
Term
Termination Date
Third Party Provider
Transition Period
Transition Plan
Work Product
Change Request
Critical Service Levels
Data Protection Laws
Dispute Resolution Procedure
Emergency Maintenance
Excusing Event
Implementation Services
Key Performance Indicators
Loss
Maintenance Window
Operating Environment
Performance Reports
Quality Standards
Root Cause Analysis
Security Requirements
Service Availability
Service Hours
Service Location
Software
Source Code
Support Services
Territory
User
Virus
Affiliate
Agreement
Applicable Law
Background IP
Business Day
Business Hours
Change Control Procedure
Charges
Commencement Date
Confidential Information
Contract Year
Customer
Customer Data
Customer Materials
Deliverables
Delivery Location
Disaster Recovery Plan
Documentation
Effective Date
Exit Plan
Force Majeure Event
Good Industry Practice
Governance Body
Initial Term
Intellectual Property Rights
Key Personnel
Material Breach
Milestone
Notice
Personal Information
Personnel
Project Plan
Regulatory Requirements
Renewal Term
Reports
Service Credits
Service Levels
Services
Service Provider
Service Provider System
Service Recipient
Specifications
Statement of Work
Subcontractor
Term
Termination Date
Third Party Provider
Transition Period
Transition Plan
Work Product
Change Request
Critical Service Levels
Data Protection Laws
Dispute Resolution Procedure
Emergency Maintenance
Excusing Event
Implementation Services
Key Performance Indicators
Loss
Maintenance Window
Operating Environment
Performance Reports
Quality Standards
Root Cause Analysis
Security Requirements
Service Availability
Service Hours
Service Location
Software
Source Code
Support Services
Territory
User
Virus
Clauses
Interpretation
Services Scope
Term and Renewal
Service Levels
Charges and Payment
Invoicing
Personnel
Customer Obligations
Service Provider Obligations
Governance
Change Control
Data Protection
Privacy
Confidentiality
Intellectual Property
Warranties
Indemnification
Limitation of Liability
Insurance
Force Majeure
Dispute Resolution
Audit Rights
Compliance with Laws
Anti-Corruption
Assignment and Subcontracting
Termination Rights
Exit Management
Business Continuity
Security
Performance Monitoring
Reporting
Risk Management
Quality Assurance
Knowledge Transfer
Asset Management
Transition Services
Non-Solicitation
Notices
Governing Law
Entire Agreement
Severability
Amendments
Waiver
Competition Law
Employment Matters
Services Scope
Term and Renewal
Service Levels
Charges and Payment
Invoicing
Personnel
Customer Obligations
Service Provider Obligations
Governance
Change Control
Data Protection
Privacy
Confidentiality
Intellectual Property
Warranties
Indemnification
Limitation of Liability
Insurance
Force Majeure
Dispute Resolution
Audit Rights
Compliance with Laws
Anti-Corruption
Assignment and Subcontracting
Termination Rights
Exit Management
Business Continuity
Security
Performance Monitoring
Reporting
Risk Management
Quality Assurance
Knowledge Transfer
Asset Management
Transition Services
Non-Solicitation
Notices
Governing Law
Entire Agreement
Severability
Amendments
Waiver
Competition Law
Employment Matters
Relevant Industries
Information Technology
Business Process Services
Manufacturing
Financial Services
Healthcare
Telecommunications
Retail
Energy
Professional Services
Transportation and Logistics
Education
Government and Public Sector
Relevant Teams
Legal
Procurement
Operations
Information Technology
Finance
Risk Management
Compliance
Human Resources
Project Management
Vendor Management
Service Delivery
Relevant Roles
Chief Executive Officer
Chief Operating Officer
Chief Information Officer
Chief Financial Officer
Head of Procurement
General Counsel
Legal Counsel
Procurement Manager
Vendor Management Director
Operations Director
Project Manager
Contract Manager
Risk Management Officer
Compliance Officer
IT Director
Business Unit Head
Service Delivery Manager
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