This Outsourcing Contract Agreement is designed for use in New Zealand business environments where an organization wishes to engage an external service provider to manage and deliver specific business functions or services. The agreement is particularly relevant in today's business landscape where organizations increasingly focus on core competencies while outsourcing peripheral or specialized functions to achieve operational efficiency and cost effectiveness. It incorporates key requirements under New Zealand law, including provisions for privacy, data protection, fair trading, and electronic transactions. The document provides a comprehensive framework covering service delivery, performance metrics, risk allocation, and governance structures, while maintaining flexibility to accommodate various types of outsourcing arrangements, from IT services to business process outsourcing.
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1. Parties: Identifies and provides details of the contracting parties (service provider and customer)
2. Background: Sets out the context and commercial intent of the outsourcing arrangement
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Services: Describes the services to be provided and any excluded services
5. Term and Renewal: Specifies the duration of the agreement and renewal provisions
6. Service Provider's Obligations: Details the core obligations and responsibilities of the service provider
7. Customer's Obligations: Outlines the customer's responsibilities and obligations
8. Service Levels: Establishes performance standards and metrics for service delivery
9. Charges and Payment: Details the fee structure, payment terms, and invoicing procedures
10. Governance and Reporting: Describes management structure, reporting requirements, and oversight mechanisms
11. Intellectual Property Rights: Addresses ownership and usage rights of pre-existing and newly created IP
12. Confidentiality: Governs the protection and handling of confidential information
13. Data Protection and Privacy: Addresses compliance with privacy laws and data security requirements
14. Liability and Indemnities: Sets out liability limitations and indemnification obligations
15. Termination: Specifies termination rights, procedures, and consequences
16. Exit Management: Outlines the process for service transition upon contract end
17. General Provisions: Contains standard boilerplate clauses including governing law, notices, and dispute resolution
1. Change Control: Procedures for managing changes to services or contract terms - include when services are likely to evolve
2. Business Continuity and Disaster Recovery: Details recovery procedures and continuity planning - include for critical services
3. Staff and Key Personnel: Requirements for service provider personnel - include when specific expertise or security clearance is needed
4. Security Requirements: Specific security protocols and requirements - include for handling sensitive data or systems
5. Regulatory Compliance: Industry-specific compliance requirements - include for regulated sectors
6. Anti-Bribery and Corruption: Compliance with anti-corruption laws - include for international arrangements
7. Force Majeure: Handling of events beyond parties' control - include for long-term or critical services
8. Parent Company Guarantee: Additional financial security - include when service provider's financial strength is crucial
9. Insurance Requirements: Specific insurance coverage requirements - include for high-risk services
1. Schedule 1 - Services Description: Detailed technical and operational specifications of services
2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics, measurement methods, and remedies
3. Schedule 3 - Charges: Detailed pricing, rate cards, and payment calculations
4. Schedule 4 - Customer Dependencies: Detailed list of customer-provided resources and responsibilities
5. Schedule 5 - Governance Procedures: Detailed governance structure, meeting schedules, and escalation procedures
6. Schedule 6 - Security Policies: Detailed security requirements and procedures
7. Schedule 7 - Business Continuity Plan: Detailed continuity and disaster recovery procedures
8. Schedule 8 - Exit Plan: Detailed transition assistance and exit management procedures
9. Schedule 9 - Approved Subcontractors: List of approved subcontractors and their roles
10. Appendix A - Form of Change Order: Template for documenting and approving changes
11. Appendix B - Reports: Templates and specifications for required reports
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