The Managed Services Agreement serves as the primary contractual framework for outsourcing operational responsibilities to specialized service providers under German law. This document is essential when a business wants to delegate the management and operation of specific functions, systems, or processes to an external provider while maintaining clear service levels, accountability, and compliance with German regulatory requirements. It combines standard commercial terms with jurisdiction-specific elements such as German data protection requirements, liability frameworks, and commercial law provisions. The agreement typically includes detailed service descriptions, performance metrics, pricing structures, and governance mechanisms, making it suitable for both traditional IT services and broader operational service arrangements. This type of agreement is particularly relevant in the context of digital transformation initiatives, operational efficiency programs, and strategic outsourcing relationships.
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1. Parties: Identification of contracting parties with full legal entity details
2. Background: Context of the agreement and brief description of parties' business relationship
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Overview of services to be provided, with reference to detailed service descriptions in schedules
5. Term and Termination: Duration of agreement, renewal terms, and termination rights
6. Service Provider's Obligations: Core obligations, service standards, and compliance requirements
7. Customer's Obligations: Customer responsibilities, cooperation requirements, and dependencies
8. Service Levels: Performance standards, measurement criteria, and remedies for failure
9. Charges and Payment: Pricing, payment terms, invoicing, and price adjustment mechanisms
10. Governance and Reporting: Service management, reporting requirements, and oversight procedures
11. Data Protection and Security: GDPR compliance, data processing terms, and security requirements
12. Intellectual Property Rights: IP ownership, licenses, and usage rights
13. Liability and Insurance: Limitation of liability, indemnification, and insurance requirements
14. Force Majeure: Events excusing performance and related procedures
15. Confidentiality: Protection of confidential information and trade secrets
16. General Provisions: Standard clauses including notices, assignment, and governing law
1. Transition Services: Required if service implementation involves migration from existing providers
2. Business Continuity: Needed for critical services requiring disaster recovery and business continuity plans
3. Staff and Key Personnel: Include when specific personnel are critical to service delivery or staff transfer is involved
4. Compliance with Industry Standards: Required for regulated industries or specific technical standards
5. Anti-Corruption and Ethics: Important for international services or public sector customers
6. Exit Management: Detailed if complex transition out process is anticipated
7. Subcontractors: Include if service provider will rely on subcontractors
8. Change Control: Required for services likely to require significant changes during term
1. Service Description: Detailed description of each service component and delivery requirements
2. Service Levels and Service Credits: Detailed SLAs, measurement methods, and service credit calculations
3. Charges: Detailed pricing, rate cards, and charging mechanisms
4. Customer Dependencies: Detailed customer obligations and requirements for service delivery
5. Data Processing Agreement: GDPR-compliant data processing terms and technical/organizational measures
6. Security Requirements: Detailed security standards and procedures
7. Governance Procedures: Detailed management structures, meeting schedules, and escalation procedures
8. Form of Reports: Templates and specifications for required service reports
9. Business Continuity Plan: Detailed continuity and disaster recovery procedures
10. Exit Plan: Detailed procedures for service termination and transition
11. Approved Subcontractors: List of approved subcontractors and their roles
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