IT Service Agreement for Malaysia

IT Service Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions for the provision of IT services between a service provider and a client. The document details the scope of services, service levels, pricing, data protection requirements, intellectual property rights, and operational procedures while ensuring compliance with Malaysian legislation including the Personal Data Protection Act 2010 and Electronic Commerce Act 2006. It provides a robust framework for managing the service relationship, defining responsibilities, and protecting both parties' interests in the context of technology service delivery.

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What is a IT Service Agreement?

The IT Service Agreement is a essential legal document used when establishing a formal relationship between an IT service provider and a client organization in Malaysia. This agreement is crucial for defining the parameters of technology service delivery, including cloud services, software development, system maintenance, or IT consulting services. The document ensures compliance with Malaysian legislation, particularly the Personal Data Protection Act 2010, Electronic Commerce Act 2006, and other relevant laws. It addresses key aspects such as service levels, data protection, intellectual property rights, and operational procedures, providing both parties with clear guidelines and protections for their business relationship. The IT Service Agreement is particularly important in today's digital business environment where technology services are integral to business operations and data protection is paramount.

What sections should be included in a IT Service Agreement?

1. Parties: Identification and details of the service provider and client

2. Background: Context of the agreement and brief description of the services to be provided

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Scope of Services: Detailed description of IT services to be provided

5. Service Levels: Performance standards, metrics, and measurement methods

6. Fees and Payment: Pricing structure, payment terms, and invoicing procedures

7. Term and Termination: Duration of agreement and termination provisions

8. Data Protection and Privacy: Compliance with PDPA 2010 and data handling requirements

9. Confidentiality: Protection of confidential information and trade secrets

10. Intellectual Property Rights: Ownership and licensing of IP created or used in services

11. Warranties and Representations: Service provider's warranties and client's acknowledgments

12. Liability and Indemnification: Limitation of liability and indemnification obligations

13. Force Majeure: Provisions for unforeseen circumstances and service interruptions

14. Governing Law and Jurisdiction: Malaysian law application and dispute resolution procedures

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

1. Change Management: Procedures for requesting and implementing service changes - include for complex or long-term services

2. Disaster Recovery: Business continuity and disaster recovery procedures - essential for critical systems

3. Security Requirements: Specific security protocols and compliance requirements - important for handling sensitive data

4. Third-Party Services: Management of subcontractors and third-party service providers - include if external parties involved

5. Training and Support: Details of training and ongoing support services - relevant for user-facing systems

6. Exit Management: Transition arrangements at contract end - important for complex or critical services

7. Insurance: Specific insurance requirements - include for high-value or high-risk services

8. Compliance with Industry Standards: Specific industry standards and certifications - include for regulated industries

What schedules should be included in a IT Service Agreement?

1. Service Description Schedule: Detailed technical specifications of services

2. Service Level Agreement (SLA): Detailed performance metrics, response times, and penalties

3. Fee Schedule: Detailed pricing, payment milestones, and rate cards

4. Implementation Plan: Project timeline, milestones, and deliverables

5. Technical Requirements: Hardware, software, and infrastructure specifications

6. Support Services Schedule: Details of maintenance and support services

7. Data Processing Agreement: Detailed data handling procedures and PDPA compliance

8. Business Continuity Plan: Disaster recovery and service continuation procedures

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

Malaysia

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Financial Services

Healthcare

E-commerce

Manufacturing

Education

Telecommunications

Professional Services

Government and Public Sector

Retail

Banking

Insurance

Logistics and Supply Chain

Relevant Teams

Legal

Information Technology

Procurement

Operations

Information Security

Vendor Management

Project Management

Risk and Compliance

Digital Transformation

Technical Operations

Solutions Architecture

Relevant Roles

Chief Information Officer

IT Director

Legal Counsel

Procurement Manager

Contract Manager

IT Project Manager

Chief Technology Officer

Head of IT Operations

Information Security Manager

Vendor Management Director

Chief Digital Officer

IT Service Delivery Manager

Business Development Manager

Technology Consultant

Solutions Architect

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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