The Shared Services Agreement is essential for organizations operating in the Philippines that wish to consolidate and optimize their operational functions through a centralized service delivery model. This document is typically used when companies want to establish a formal arrangement for sharing resources, expertise, and services across different business units or between separate legal entities. The agreement comprehensively covers service specifications, performance metrics, cost allocation, governance structures, and compliance requirements under Philippine law. It's particularly relevant in contexts where organizations seek to achieve economies of scale, standardize processes, and improve service quality while maintaining clear accountability and risk management frameworks. The document must comply with Philippine regulations including the Corporation Code, Data Privacy Act, and Labor Code, making it suitable for both domestic and international organizations operating within the Philippine jurisdiction.
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1. Parties: Identification of the service provider and recipient entities, including their complete legal names, registration details, and addresses
2. Background: Context of the agreement, relationship between parties, and general purpose of the shared services arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Scope of Services: Comprehensive description of all services to be provided under the agreement
5. Service Levels: Specific performance standards, metrics, and measurement methods for the services
6. Charges and Payment Terms: Detailed fee structure, payment schedules, and invoicing procedures
7. Governance and Management: Management structure, reporting relationships, and oversight mechanisms
8. Personnel and Resources: Requirements and responsibilities regarding staff and resources allocation
9. Data Protection and Privacy: Obligations regarding data handling and privacy compliance under Philippine law
10. Confidentiality: Provisions for protecting confidential information of both parties
11. Intellectual Property Rights: Ownership and usage rights of IP involved in or created during service provision
12. Liability and Indemnification: Allocation of risks and responsibilities between parties
13. Term and Termination: Duration of agreement and circumstances for termination
14. Dispute Resolution: Procedures for resolving disputes under Philippine law
15. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Transition Services: Details of transition arrangements when implementing or terminating services - include if there's a complex implementation phase
2. Business Continuity: Disaster recovery and business continuity requirements - include for critical services
3. Compliance with Industry Standards: Specific industry compliance requirements - include if operating in regulated sectors
4. Change Management: Procedures for implementing service or operational changes - include for complex service arrangements
5. Audit Rights: Rights and procedures for auditing service delivery - include for regulated industries or critical services
6. Force Majeure: Provisions for handling unforeseen circumstances - include if services are critical or high-value
7. Anti-Corruption and Ethics: Specific anti-corruption and ethical business conduct provisions - include for international arrangements or government-related services
1. Schedule 1 - Service Descriptions: Detailed descriptions of each service to be provided
2. Schedule 2 - Service Levels and KPIs: Specific metrics, targets, and measurement methodologies for service performance
3. Schedule 3 - Charging Model: Detailed breakdown of fees, costs, and payment calculations
4. Schedule 4 - Governance Procedures: Detailed procedures for service management and oversight
5. Schedule 5 - Key Personnel: List of key personnel and their roles from both parties
6. Schedule 6 - Technical Requirements: Technical specifications and requirements for service delivery
7. Schedule 7 - Data Processing Agreement: Specific terms for data handling and privacy compliance
8. Schedule 8 - Business Continuity Plan: Detailed procedures for ensuring service continuity
9. Appendix A - Contact Details: Contact information for key personnel and authorized representatives
10. Appendix B - Required Reports: Templates and specifications for required service reports
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