Outsourcing Contract Agreement for Nigeria

Outsourcing Contract Agreement Template for Nigeria

A comprehensive legal agreement governed by Nigerian law that establishes and regulates the relationship between a service provider and a client company for outsourced services. The document details the scope of services, performance standards, payment terms, data protection requirements, and compliance with Nigerian regulations including the Labour Act and Nigeria Data Protection Regulation (NDPR). It includes provisions for service delivery, quality metrics, personnel management, confidentiality, intellectual property rights, and dispute resolution mechanisms specific to the Nigerian jurisdiction.

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What is a Outsourcing Contract Agreement?

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.

What sections should be included in a Outsourcing Contract Agreement?

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

What sections are optional to include in a Outsourcing Contract Agreement?

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

What schedules should be included in a Outsourcing Contract Agreement?

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

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

Nigeria

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Manufacturing

Financial Services

Telecommunications

Oil and Gas

Healthcare

Professional Services

Retail

Energy

Construction

Education

Logistics and Supply Chain

Business Process Outsourcing

Facilities Management

Human Resources Services

Relevant Teams

Legal

Procurement

Operations

Finance

Compliance

Risk Management

Human Resources

Information Technology

Facilities Management

Supply Chain

Commercial

Business Development

Project Management

Vendor Management

Contract Administration

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Chief Financial Officer

General Counsel

Legal Director

Procurement Manager

Operations Director

Vendor Management Lead

Contracts Manager

Project Manager

Compliance Officer

Risk Manager

Human Resources Director

IT Director

Facilities Manager

Finance Manager

Business Development Manager

Commercial Director

Supply Chain Manager

Operations 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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