IT Services Contract for Malaysia

IT Services Contract Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions for the provision of information technology services. This contract addresses key aspects including service scope, performance standards, data protection requirements under the Personal Data Protection Act 2010, intellectual property rights, liability limitations, and operational requirements. It incorporates Malaysian-specific legal requirements while ensuring compliance with relevant technology and commerce regulations, making it suitable for both domestic and international service arrangements within the Malaysian jurisdiction.

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What is a IT Services Contract?

The IT Services Contract is essential for businesses operating in Malaysia that require professional information technology services. This contract type is specifically designed to comply with Malaysian legal requirements, including the Personal Data Protection Act 2010, Electronic Commerce Act 2006, and other relevant legislation. It is commonly used when engaging external IT service providers, consultants, or technology firms for services such as software development, system maintenance, cloud services, or IT consultation. The agreement provides comprehensive coverage of service specifications, performance metrics, data protection obligations, and risk allocation while considering local business practices and regulatory requirements. This document is particularly important given Malaysia's growing digital economy and the increasing need for formalized IT service relationships that protect both service providers and customers.

What sections should be included in a IT Services Contract?

1. Parties: Identification of contracting parties with full legal names and registration details

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

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

5. Service Provider's Obligations: Key responsibilities and commitments of the service provider

6. Customer's Obligations: Key responsibilities and commitments of the customer

7. Service Levels: Performance standards and service level requirements

8. Charges and Payment: Pricing, payment terms, and invoicing procedures

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

10. Confidentiality: Protection and handling of confidential information

11. Data Protection and Security: Compliance with PDPA and security requirements

12. Liability and Indemnities: Limitation of liability and indemnification provisions

13. Force Majeure: Handling of events beyond parties' reasonable control

14. Term and Termination: Contract duration and termination provisions

15. Dispute Resolution: Process for resolving disputes

16. General Provisions: Standard boilerplate clauses including governing law

What sections are optional to include in a IT Services Contract?

1. Change Control: Process for managing changes to services or contract terms - include if services likely to evolve

2. Staff and Key Personnel: Requirements for service provider's staff - include if specific personnel are crucial

3. Third Party Software: Terms for use of third-party software - include if third-party software is part of solution

4. Hardware Provisions: Terms for hardware supply and maintenance - include if hardware is provided

5. Transition and Exit: Handover requirements - include for complex or business-critical services

6. Business Continuity: Disaster recovery requirements - include for critical services

7. Audit Rights: Customer's audit rights - include for regulated industries or critical services

8. Anti-Bribery and Corruption: Compliance with anti-corruption laws - include for public sector or high-value contracts

9. Insurance: Insurance requirements - include for high-risk or high-value services

10. Source Code Escrow: Source code protection arrangements - include if custom software is developed

What schedules should be included in a IT Services Contract?

1. Service Description: Detailed technical specification of services

2. Service Levels and Service Credits: Detailed SLA metrics and related service credits

3. Charges: Detailed pricing structure and payment terms

4. Customer Dependencies: Detailed customer responsibilities and requirements

5. Security Requirements: Detailed security policies and requirements

6. Data Processing Agreement: Detailed terms for personal data processing under PDPA

7. Business Continuity Plan: Detailed disaster recovery and business continuity procedures

8. Approved Subcontractors: List of approved third-party service providers

9. Form of Change Order: Template for documenting agreed changes

10. Exit Plan: Detailed transition-out procedures and requirements

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
Relevant Industries

Information Technology

Banking and Finance

Healthcare

E-commerce

Manufacturing

Telecommunications

Professional Services

Government and Public Sector

Education

Retail

Insurance

Media and Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Risk and Compliance

Operations

Information Security

Finance

Vendor Management

Project Management

Digital Transformation

Technical Operations

Service Delivery

Relevant Roles

Chief Information Officer

IT Director

Chief Technology Officer

Procurement Manager

Legal Counsel

Contract Manager

IT Project Manager

Information Security Officer

Technology Operations Manager

Business Development Manager

Solutions Architect

Service Delivery Manager

Vendor Management Officer

Risk and Compliance Manager

Digital Transformation Lead

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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