Outsourcing Service Level Agreement Template for Philippines

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Key Requirements PROMPT example:

Outsourcing Service Level Agreement

"I need an Outsourcing Service Level Agreement for my IT company based in Manila to provide software development and technical support services to a US client, with specific emphasis on data privacy compliance and cross-border data transfer requirements."

Document background
The Outsourcing Service Level Agreement is a critical document used to establish and maintain clear service expectations and performance standards in outsourcing relationships under Philippine law. This agreement is particularly relevant given the Philippines' position as a global outsourcing hub, serving clients across various sectors including IT, business processes, and customer service. The document defines the scope of services, performance metrics, compliance requirements, and operational procedures while ensuring adherence to Philippine regulations such as the Data Privacy Act, Labor Code, and E-Commerce Act. It's designed to protect both service providers and customers by clearly outlining responsibilities, service levels, pricing, data protection measures, and dispute resolution mechanisms. The agreement is structured to accommodate both domestic and international outsourcing arrangements, with specific provisions for cross-border data transfers and intellectual property protection.
Suggested Sections

1. Parties: Identification of the service provider and customer, including their complete legal names, addresses, and registration details

2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the outsourcing arrangement

3. Definitions: Detailed definitions of technical terms, service-related terminology, and other key concepts used throughout the agreement

4. Scope of Services: Detailed description of services to be provided, including core deliverables and expected outcomes

5. Service Levels: Specific, measurable performance standards and metrics that the service provider must meet

6. Term and Renewal: Duration of the agreement, commencement date, and conditions for renewal

7. Charges and Payment: Pricing structure, payment terms, invoicing procedures, and any penalties or bonuses

8. Service Provider Obligations: Key responsibilities and commitments of the service provider, including resource provisions and quality standards

9. Customer Obligations: Responsibilities of the customer, including provision of necessary information and access

10. Data Protection and Privacy: Compliance with Philippine Data Privacy Act and data handling requirements

11. Intellectual Property Rights: Ownership and usage rights of pre-existing and newly created intellectual property

12. Confidentiality: Protection of confidential information and trade secrets

13. Personnel and Resources: Requirements for staff qualifications, training, and resource allocation

14. Governance and Reporting: Management structure, reporting requirements, and performance review processes

15. Termination: Grounds for termination, notice periods, and consequences of termination

16. Limitation of Liability: Caps on liability and exclusions of certain types of damages

17. Force Majeure: Provisions for handling events beyond parties' reasonable control

18. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

19. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Transition Services: Details of knowledge transfer and transition process - include when there's a transition from existing provider or when complex service handover is required

2. Business Continuity and Disaster Recovery: Detailed procedures for maintaining service during disruptions - include for critical services or when required by regulation

3. Change Control: Procedures for requesting and implementing changes to services - include for long-term or complex service arrangements

4. Audit Rights: Customer's rights to audit provider's operations - include when handling sensitive data or for regulated industries

5. Security Requirements: Specific security protocols and standards - include when handling sensitive data or systems

6. Compliance with Anti-Corruption Laws: Specific anti-corruption provisions - include when dealing with government contracts or high-risk jurisdictions

7. Insurance Requirements: Specific insurance coverage requirements - include for high-risk services or when required by regulation

8. Exit Management: Detailed procedures for service termination and transfer - include for complex or critical services

Suggested Schedules

1. Schedule 1 - Service Descriptions: Detailed technical specifications of all services to be provided

2. Schedule 2 - Service Levels and KPIs: Detailed metrics, measurement methods, and reporting requirements

3. Schedule 3 - Charges and Pricing: Detailed pricing structure, rate cards, and payment calculations

4. Schedule 4 - Data Processing Agreement: Specific terms for handling personal data in compliance with Privacy Act

5. Schedule 5 - Personnel and Key Contacts: List of key personnel, roles, and contact information

6. Schedule 6 - Governance Procedures: Detailed procedures for meetings, reporting, and escalation

7. Schedule 7 - Technical Requirements: Infrastructure, system, and technical specifications

8. Schedule 8 - Form of Change Order: Template for documenting and approving changes to services

9. Appendix A - Service Location(s): Details of service delivery locations and facilities

10. Appendix B - Approved Subcontractors: List of approved subcontractors and their roles

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

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Business Process Outsourcing

Healthcare Services

Financial Services

Customer Service

Technical Support

Software Development

Data Analytics

Human Resources

Knowledge Process Outsourcing

Manufacturing

Telecommunications

E-commerce

Legal Process Outsourcing

Research and Development

Relevant Teams

Legal

Procurement

Operations

Information Technology

Compliance

Risk Management

Finance

Human Resources

Quality Assurance

Service Delivery

Vendor Management

Project Management

Business Development

Information Security

Data Protection

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Chief Technology Officer

Procurement Manager

Vendor Management Director

Operations Director

Legal Counsel

Compliance Officer

Data Protection Officer

Service Delivery Manager

Contract Manager

Project Manager

Operations Manager

IT Director

Risk Manager

Quality Assurance Manager

Business Development Manager

Account Manager

Human Resources Director

Finance Director

Industries
Data Privacy Act of 2012 (Republic Act No. 10173): Governs the protection of personal data and establishes compliance requirements for entities processing personal information. Critical for outsourcing arrangements involving data processing.
Labor Code of the Philippines: Regulates employment relationships and working conditions, including provisions on contracting and subcontracting arrangements that may affect outsourcing relationships.
Civil Code of the Philippines: Contains fundamental provisions on contracts, obligations, and general principles of law that apply to all contractual relationships in the Philippines.
Intellectual Property Code of the Philippines (Republic Act No. 8293): Protects intellectual property rights, which is crucial for outsourcing agreements involving software development, content creation, or other IP-intensive services.
E-Commerce Act of 2000 (Republic Act No. 8792): Provides legal framework for electronic transactions and digital signatures, relevant for online service delivery and contract execution.
Department of Labor and Employment (DOLE) Department Order No. 174-17: Regulates contracting and subcontracting arrangements, including rules on legitimate contracting and prohibited labor-only contracting.
Securities and Exchange Commission (SEC) Guidelines: Provides regulations for business registration and foreign ownership restrictions that may affect outsourcing arrangements with foreign companies.
National Privacy Commission (NPC) Circulars and Guidelines: Provides specific guidelines on data privacy and protection, including cross-border data transfers common in outsourcing arrangements.
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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