Outsourcing Service Level Agreement Template for Indonesia

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Key Requirements PROMPT example:

Outsourcing Service Level Agreement

"I need an Outsourcing Service Level Agreement for our IT services company based in Jakarta to provide software development and maintenance services to a multinational client, with specific provisions for data protection, cross-border data transfer, and 24/7 support services starting March 2025."

Document background
The Outsourcing Service Level Agreement is essential for businesses operating in Indonesia that seek to outsource specific functions or services to external providers. This document is particularly relevant in the context of Indonesian business practices and regulatory framework, where outsourcing arrangements are subject to strict regulatory oversight under Law No. 13 of 2003 on Manpower and Minister of Manpower and Transmigration Regulation No. 19 of 2012. The agreement serves to define the scope of outsourced services, establish performance metrics, ensure compliance with local labor laws, and protect both parties' interests while maintaining transparency in service delivery and pricing. It is crucial for businesses to have this agreement in place to ensure legal compliance, clear service expectations, and proper risk allocation in outsourcing relationships.
Suggested Sections

1. Parties: Identification of the service provider and service recipient, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, business relationship, and purpose of the outsourcing arrangement

3. Definitions: Detailed definitions of technical terms, service-related concepts, and key phrases used throughout the agreement

4. Scope of Services: Detailed description of outsourced services, including specific activities, deliverables, and exclusions

5. Term and Renewal: Duration of the agreement, commencement date, and renewal terms

6. Service Levels: Specific performance metrics, KPIs, and measurement criteria for service delivery

7. Pricing and Payment Terms: Fee structure, payment schedule, invoicing procedures, and any performance-related pricing adjustments

8. Personnel and Management: Requirements for personnel qualifications, training, and management structure

9. Compliance with Laws: Obligations to comply with Indonesian labor laws, outsourcing regulations, and other applicable legislation

10. Confidentiality: Protection of confidential information and trade secrets

11. Data Protection: Requirements for handling and protecting customer data and personal information

12. Intellectual Property: Ownership and usage rights of IP created during service delivery

13. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

14. Termination: Grounds for termination, notice requirements, and consequences of termination

15. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law provisions

Optional Sections

1. Business Continuity: Procedures for ensuring service continuity during disruptions, used when services are critical to client operations

2. Knowledge Transfer: Process for transferring knowledge and documentation, important when complex processes are involved

3. Environmental Compliance: Environmental protection requirements, relevant for services with environmental impact

4. Insurance: Specific insurance requirements beyond standard coverage, used for high-risk services

5. Security Requirements: Additional security measures and protocols, crucial for services involving sensitive information

6. Transition Services: Procedures for service transition at start and end of contract, important for complex service arrangements

7. Subcontracting: Terms for engaging subcontractors, when service provider may need to subcontract certain functions

8. Force Majeure: Specific provisions for unforeseen events, particularly relevant in long-term or critical service arrangements

Suggested Schedules

1. Schedule A - Service Description: Detailed technical specifications of services and delivery requirements

2. Schedule B - Service Levels and KPIs: Detailed metrics, measurement methods, and reporting requirements

3. Schedule C - Pricing and Payment Schedule: Detailed fee structure, payment terms, and pricing calculations

4. Schedule D - Personnel Requirements: Specific qualifications, experience requirements, and key personnel

5. Schedule E - Compliance Requirements: Detailed regulatory compliance requirements specific to the services

6. Schedule F - Operational Procedures: Day-to-day operational procedures and protocols

7. Schedule G - Required Reports: Templates and specifications for required service reports

8. Appendix 1 - Contact Details: Key contact persons and escalation matrix

9. Appendix 2 - Security Protocols: Detailed security requirements and procedures

10. Appendix 3 - Exit Plan Template: Template for developing the exit plan upon termination

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

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Manufacturing

Financial Services

Telecommunications

Healthcare

Retail

Logistics and Supply Chain

Business Process Outsourcing

Facilities Management

Human Resources Services

Customer Service

Professional Services

Relevant Teams

Legal

Procurement

Operations

Vendor Management

Compliance

Human Resources

Project Management

Service Delivery

Risk Management

Commercial

Finance

Business Development

Relevant Roles

Chief Operations Officer

Procurement Manager

Legal Counsel

Contract Manager

Operations Director

Vendor Management Specialist

Compliance Officer

Human Resources Director

Project Manager

Service Delivery Manager

Risk Manager

Commercial Director

Business Development Manager

General Counsel

Chief Financial Officer

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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