The Outsourcing Services Contract is designed for use in New Zealand business environments where an organization wishes to engage an external service provider to perform specific business functions or services. This contract type is essential when establishing long-term service relationships that require clear definition of scope, responsibilities, and performance standards. It addresses key aspects of New Zealand law including privacy, data protection, fair trading, and commercial law requirements. The document is particularly valuable for businesses looking to focus on core competencies while delegating specialized functions to expert providers, ensuring both parties' interests are protected through comprehensive terms and conditions. It includes detailed provisions for service delivery, quality standards, pricing, intellectual property rights, confidentiality, and risk allocation, all within the framework of New Zealand's legal system.
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1. Parties: Identifies and provides full legal details of the contracting parties (service provider and client)
2. Background: Sets out the context and purpose of the agreement, including the client's business needs and provider's expertise
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Services: Outlines the scope and nature of services to be provided, including service levels and deliverables
5. Term and Renewal: Specifies the initial duration of the agreement and any renewal provisions
6. Fees and Payment: Details the fee structure, payment terms, invoicing process, and any price adjustment mechanisms
7. Service Provider Obligations: Lists key responsibilities and commitments of the service provider
8. Client Obligations: Specifies the client's responsibilities and commitments to enable service delivery
9. Performance Standards: Establishes required service levels, KPIs, and quality standards
10. Intellectual Property Rights: Addresses ownership and usage rights of pre-existing and newly created IP
11. Confidentiality: Protects confidential information and trade secrets of both parties
12. Data Protection and Privacy: Ensures compliance with Privacy Act 2020 and data protection requirements
13. Liability and Indemnities: Sets out liability limitations and indemnification obligations
14. Termination: Specifies termination rights, process, and consequences
15. Exit and Transition: Outlines obligations and processes for service transition upon termination
16. General Provisions: Includes standard boilerplate clauses such as notices, governing law, and dispute resolution
1. Business Continuity and Disaster Recovery: Required for critical services or when handling sensitive data
2. Security Requirements: Necessary when services involve IT systems or sensitive information
3. Personnel and Subcontracting: Important when specific personnel are key to service delivery or when subcontracting needs to be regulated
4. Change Control: Required for complex services likely to evolve over time
5. Audit Rights: Important for regulated industries or when compliance verification is necessary
6. Insurance: Required when services involve significant risks or physical presence
7. Force Majeure: Important for long-term contracts or services susceptible to external disruptions
8. Anti-bribery and Corruption: Necessary for international services or when dealing with public sector clients
9. Environmental Compliance: Required when services have environmental impacts
1. Schedule 1 - Services Description: Detailed description of services, including scope, specifications, and deliverables
2. Schedule 2 - Service Levels: Detailed service level agreements, KPIs, and measurement methods
3. Schedule 3 - Pricing and Payment: Detailed fee structure, rates, expenses, and payment terms
4. Schedule 4 - Key Personnel: Lists key personnel from both parties and their roles
5. Schedule 5 - Implementation Plan: Timeline and milestones for service implementation
6. Schedule 6 - Governance and Reporting: Management structure, meeting schedules, and reporting requirements
7. Schedule 7 - Technical Requirements: Technical specifications, systems requirements, and interfaces
8. Schedule 8 - Exit Plan: Detailed transition out procedures and requirements
9. Appendix A - Form of Change Request: Template for requesting and documenting changes to services
10. Appendix B - Security Policies: Relevant security policies and procedures
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