The Outsourcing Contract Agreement is a vital legal instrument used in Nigerian business operations when a company (the client) wishes to delegate certain business functions or operations to an external service provider. This document is essential in today's business environment where companies increasingly focus on core competencies while outsourcing non-core functions. The agreement must comply with Nigerian legislation, including the Labour Act, Companies and Allied Matters Act (CAMA) 2020, and the Nigeria Data Protection Regulation (NDPR). It typically covers comprehensive service specifications, performance metrics, pricing structures, compliance requirements, and risk allocation between parties. The document is particularly important in protecting both parties' interests while ensuring regulatory compliance in the Nigerian business context.
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1. Parties: Identification of the contracting parties including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation
4. Scope of Services: Detailed description of services to be provided, including service levels and deliverables
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Payment Terms: Pricing, payment schedule, invoicing procedures, and payment methods
7. Service Provider's Obligations: Key responsibilities and commitments of the service provider
8. Client's Obligations: Key responsibilities and commitments of the client
9. Personnel and Supervision: Requirements for personnel qualifications, training, and supervision
10. Confidentiality: Protection and handling of confidential information
11. Data Protection and Security: Compliance with NDPR and data security measures
12. Intellectual Property Rights: Ownership and usage rights of IP created or used during service provision
13. Performance Monitoring: KPIs, reporting requirements, and performance review procedures
14. Liability and Indemnification: Limitation of liability and indemnification obligations
15. Termination: Grounds for termination and termination procedures
16. Post-Termination Obligations: Obligations of parties after contract termination including transition assistance
17. Dispute Resolution: Procedures for resolving disputes including jurisdiction and applicable law
18. Force Majeure: Provisions for handling events beyond parties' reasonable control
19. General Provisions: Standard contractual clauses including notices, amendments, and assignment
1. Anti-Bribery and Corruption: Required when dealing with government contracts or international parties
2. Foreign Exchange Provisions: Needed for international outsourcing arrangements involving foreign currency
3. Business Continuity and Disaster Recovery: Important for critical services or large-scale outsourcing
4. Environmental Compliance: Required for services with environmental impact
5. Insurance Requirements: Detailed insurance obligations for high-risk services
6. Security Clearance: Required for services involving sensitive information or restricted areas
7. Subcontracting: Needed when service provider may need to engage subcontractors
8. Change Control Procedure: Important for long-term or complex service arrangements
9. Local Content Requirements: Required for certain regulated industries in Nigeria
1. Schedule 1 - Scope of Services: Detailed description of services, specifications, and technical requirements
2. Schedule 2 - Service Levels: Specific performance metrics, KPIs, and service level requirements
3. Schedule 3 - Pricing and Payment: Detailed pricing structure, rates, and payment terms
4. Schedule 4 - Key Personnel: List of key personnel and their roles
5. Schedule 5 - Approved Subcontractors: List of pre-approved subcontractors if applicable
6. Schedule 6 - Data Processing Agreement: Detailed terms for handling personal data under NDPR
7. Schedule 7 - Transition Plan: Details of service transition in and out procedures
8. Schedule 8 - Business Continuity Plan: Disaster recovery and business continuity procedures
9. Appendix A - Required Reports: Templates and specifications for required reporting
10. Appendix B - Security Policies: Information security policies and procedures
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