IT Outsourcing Service Level Agreement for Hong Kong

IT Outsourcing Service Level Agreement Template for Hong Kong

A comprehensive legal agreement governed by Hong Kong law that establishes the terms and conditions for outsourcing IT services, including detailed service levels, performance metrics, and operational requirements. This document defines the relationship between the service provider and customer, incorporating Hong Kong's data protection requirements, electronic transaction regulations, and common law principles. It sets out specific service commitments, measurement criteria, remedies for underperformance, governance structures, and risk allocation mechanisms, while ensuring compliance with Hong Kong's legal framework for technology services and data privacy.

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What is a IT Outsourcing Service Level Agreement?

The IT Outsourcing Service Level Agreement is essential for organizations looking to outsource their information technology functions to external service providers under Hong Kong law. This document type is particularly relevant in today's digital business environment, where companies increasingly rely on specialized IT service providers for their operational needs. The agreement encompasses critical elements such as service definitions, performance metrics, data protection provisions (compliant with Hong Kong's Personal Data (Privacy) Ordinance), security requirements, and governance frameworks. It is designed to protect both parties' interests while ensuring clear accountability and performance standards. The document is structured to comply with Hong Kong's legal requirements while incorporating international best practices in IT service management and outsourcing.

What sections should be included in a IT Outsourcing Service Level Agreement?

1. Parties: Identification of service provider and customer, including registered addresses and company numbers

2. Background: Context of the agreement, brief description of the services being outsourced, and business objectives

3. Definitions: Detailed definitions of technical terms, service levels, and other key terms used throughout the agreement

4. Services: Comprehensive description of IT services to be provided, including scope and exclusions

5. Service Levels: Detailed service level requirements, measurement methodologies, and reporting requirements

6. Customer Obligations: Customer's responsibilities, including provision of access, information, and resources

7. Charges and Payment: Pricing structure, payment terms, and invoicing procedures

8. Data Protection and Security: Obligations regarding data handling, security measures, and compliance with Hong Kong privacy laws

9. Intellectual Property Rights: Ownership and licensing of IP, including pre-existing IP and newly created materials

10. Governance and Change Management: Procedures for contract governance, change requests, and ongoing service management

11. Term and Termination: Contract duration, renewal terms, and termination rights and procedures

12. Liability and Indemnities: Limitation of liability, indemnification obligations, and insurance requirements

13. Force Majeure: Circumstances excusing performance and related procedures

14. Confidentiality: Obligations regarding confidential information and trade secrets

15. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law

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

1. Transition Services: Required when services are being transferred from another provider or internal team

2. Business Continuity and Disaster Recovery: Needed for critical services requiring specific recovery commitments

3. Staff and Key Personnel: Important when specific staff or roles are crucial to service delivery

4. Benchmarking: Include when market comparison of services and pricing is required

5. Step-in Rights: Necessary for critical services where customer may need to take control

6. Multi-supplier Provisions: Required when service provider must interact with other suppliers

7. Parent Company Guarantee: Include when financial backing from parent company is required

8. Anti-bribery and Modern Slavery: Important for compliance with international standards and group policies

What schedules should be included in a IT Outsourcing Service Level Agreement?

1. Service Description: Detailed technical specifications of all services to be provided

2. Service Levels and Service Credits: Detailed metrics, measurement methods, and financial consequences of missed targets

3. Charges: Detailed pricing, including rate cards, volume discounts, and pricing mechanisms

4. Customer Dependencies: Detailed list of facilities, systems, and resources to be provided by customer

5. Security Requirements: Specific security standards, protocols, and compliance requirements

6. Business Continuity Plan: Detailed procedures for service continuity and disaster recovery

7. Governance Procedures: Detailed procedures for contract management, escalation, and reporting

8. Form of Change Order: Template for documenting and approving changes to services

9. Exit Plan: Procedures and requirements for service termination and transition

10. Data Processing Agreement: Detailed terms for personal data handling compliance with Hong Kong privacy laws

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 | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Banking

Insurance

Technology

Telecommunications

Healthcare

Retail

Manufacturing

Professional Services

Education

Government

Transportation

Logistics

E-commerce

Media and Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Operations

Risk and Compliance

Finance

Information Security

Data Protection

Vendor Management

Project Management

Service Delivery

Business Operations

Relevant Roles

Chief Information Officer

IT Director

Chief Technology Officer

Procurement Manager

Legal Counsel

Contract Manager

Information Security Officer

Data Protection Officer

Operations Director

Service Delivery Manager

Risk Manager

Compliance Officer

Vendor Management Officer

Chief Financial Officer

Project Manager

Technology Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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