IT Service Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

IT Service Agreement

"I need an IT Service Agreement for providing cloud-based ERP services to a Saudi government entity, with strict data localization requirements and compliance with Saudi government cybersecurity standards, planned to commence in March 2025."

Document background

The IT Service Agreement is essential for organizations engaging in technology service relationships within Saudi Arabia's jurisdiction. This document serves as a comprehensive framework for defining and governing the delivery of IT services, ensuring compliance with Saudi Arabian regulations including the Electronic Transactions Law, Personal Data Protection Law, and Cybersecurity regulations. It is particularly relevant in the context of Saudi Arabia's Vision 2030 digital transformation initiatives, where organizations increasingly rely on external IT service providers. The agreement covers crucial elements such as service levels, data protection, security measures, and Sharia-compliant commercial terms, while incorporating local business practices and regulatory requirements. This document is vital for protecting both service providers' and customers' interests while ensuring clear accountability and performance metrics in IT service delivery relationships.

Suggested Sections

1. Parties: Identification of the service provider and customer, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement and brief description of the parties' business relationship

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

4. Scope of Services: Detailed description of IT services to be provided, including core deliverables and service boundaries

5. Service Provider's Obligations: Comprehensive list of service provider's responsibilities, including service delivery, quality standards, and compliance requirements

6. Customer's Obligations: Customer's responsibilities, including access provision, cooperation requirements, and payment obligations

7. Service Levels: Specific performance metrics, measurement methods, and consequences of non-achievement

8. Fees and Payment Terms: Pricing structure, payment schedule, invoicing procedures, and late payment consequences

9. Data Protection and Security: Obligations regarding data handling, security measures, and compliance with Saudi Arabian data protection laws

10. Intellectual Property Rights: Ownership and usage rights of software, systems, and deliverables

11. Confidentiality: Protection of confidential information and trade secrets of both parties

12. Term and Termination: Duration of agreement, renewal terms, and termination circumstances and procedures

13. Liability and Indemnification: Limitation of liability, indemnification obligations, and insurance requirements

14. Force Majeure: Events excusing performance and procedures for handling force majeure situations

15. Governing Law and Dispute Resolution: Application of Saudi law and dispute resolution mechanisms, including Sharia compliance statement

16. General Provisions: Standard clauses including notices, amendments, assignment, and entire agreement provisions

Optional Sections

1. Change Management: Procedures for requesting and implementing changes to services or specifications, used when services are likely to evolve

2. Disaster Recovery: Detailed procedures for service continuity in case of disasters, required for critical services

3. Third-Party Services: Terms governing subcontractors and third-party service providers, needed when external parties are involved

4. Training and Knowledge Transfer: Requirements for training customer personnel, important for complex system implementations

5. Transition Services: Procedures for service handover at the beginning and end of the agreement, crucial for complex service transitions

6. Local Content Requirements: Compliance with Saudi Arabia's local content requirements, necessary for government or semi-government contracts

7. Anti-corruption Compliance: Specific anti-corruption provisions, particularly important for international service providers

8. Software License Terms: Specific terms for software licensing when software is part of the services

Suggested Schedules

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

2. Service Level Agreement (SLA): Detailed performance metrics, measurement methods, and remedies

3. Fee Schedule: Detailed breakdown of all fees, charges, and payment terms

4. Technical Requirements: Specific technical requirements, including hardware, software, and network specifications

5. Security Requirements: Detailed security protocols, compliance requirements, and procedures

6. Personnel Schedule: Key personnel, roles, qualifications, and replacement procedures

7. Data Processing Agreement: Detailed terms for handling personal and sensitive data in compliance with Saudi law

8. Business Continuity Plan: Detailed procedures for maintaining service continuity

9. Exit Management Plan: Procedures and requirements for service termination and transition

10. Approved Subcontractors: List of approved third-party service providers 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

alex.den.21@genieai.co

Relevant legal definitions

Acceptance Criteria
Acceptance Tests
Applicable Laws
Authorized Representatives
Background IP
Business Day
Business Hours
Change Control Procedure
Change Request
Confidential Information
Configuration Items
Contract Year
Critical Service Level
Customer Data
Customer Environment
Customer Materials
Data Protection Laws
Deliverables
Disaster Recovery Plan
Documentation
Effective Date
Emergency Maintenance
Exit Plan
Fees
Force Majeure Event
Good Industry Practice
Incident
Initial Term
Intellectual Property Rights
Key Personnel
Maintenance Window
Malicious Code
Milestone
Personal Data
Planned Maintenance
Project Plan
Resolution Time
Response Time
Service Credits
Service Levels
Service Level Agreement
Services
Service Provider Systems
Service Requirements
Software
Source Code
Specification
Statement of Work
Subcontractor
System
Term
Third-Party Materials
Transition Period
Transition Plan
Upgrade
User
Virus
Working Hours

Clauses

Relevant Industries

Information Technology

Banking and Financial Services

Healthcare

Retail

Manufacturing

Government and Public Sector

Education

Telecommunications

Oil and Gas

Construction

Professional Services

E-commerce

Transportation and Logistics

Media and Entertainment

Real Estate

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Risk Management

Operations

Information Security

Vendor Management

Contract Management

Technical Architecture

Service Delivery

Data Protection

Digital Transformation

Enterprise Architecture

Relevant Roles

Chief Information Officer

IT Director

Legal Counsel

Procurement Manager

Contract Manager

IT Project Manager

Information Security Manager

Compliance Officer

Risk Manager

Operations Director

Technical Architecture Manager

Service Delivery Manager

Chief Technology Officer

Chief Digital Officer

Vendor Management Officer

Data Protection Officer

IT Operations Manager

Business Relationship Manager

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