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Outsourcing Service Agreement

Outsourcing Service Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Outsourcing Service Agreement

"I need an Outsourcing Service Agreement for IT support services where our Saudi-based manufacturing company will outsource all IT operations to a local provider, with service commencement planned for March 2025 and strict data protection requirements due to sensitive industrial data."

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Document background
The Outsourcing Service Agreement is essential for businesses operating in Saudi Arabia that wish to engage external service providers for various business functions. This document is particularly relevant in the context of Saudi Vision 2030, which encourages private sector growth and operational efficiency. It addresses key aspects of service outsourcing relationships including service levels, compliance with Saudi regulations, data protection requirements, and Sharia principles. The agreement is designed to protect both parties' interests while ensuring compliance with local laws, including the Saudi Labor Law, Data Protection regulations, and relevant industry-specific requirements. It's commonly used when organizations need to formalize long-term service arrangements, establish clear performance metrics, and ensure proper governance of outsourced functions while maintaining regulatory compliance.
Suggested Sections

1. Parties: Identification of contracting parties including full legal names, registration details, and addresses

2. Background: Context of the agreement, relationship between parties, and high-level objectives

3. Definitions: Detailed definitions of key terms used throughout the agreement

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

5. Term and Termination: Duration of agreement, renewal terms, and termination provisions including notice periods

6. Service Provider Obligations: Key responsibilities, performance standards, and compliance requirements for the service provider

7. Customer Obligations: Customer's responsibilities, including provision of information and access requirements

8. Fees and Payment: Payment terms, fee structure, invoicing procedures, and VAT considerations

9. Service Levels: Performance metrics, measurement methods, and consequences of failure to meet standards

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

11. Confidentiality: Protection of confidential information, permitted uses, and disclosure restrictions

12. Intellectual Property: Ownership and licensing of IP, including pre-existing and newly created materials

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

14. Force Majeure: Events excusing performance and related procedures

15. Governing Law and Dispute Resolution: Saudi law governance and dispute resolution mechanisms including local courts or arbitration

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

Optional Sections

1. Transition Services: Include when complex service transition is required, detailing handover process and responsibilities

2. Business Continuity: Add for critical services requiring disaster recovery and business continuity planning

3. Change Control: Include for long-term or complex services requiring formal change management procedures

4. Compliance with Islamic Finance: Required when financial aspects need explicit Sharia compliance

5. Anti-corruption: Add for high-value contracts or when dealing with government entities

6. Personnel and Key Staff: Include when specific staff or qualifications are crucial to service delivery

7. Subcontracting: Add when subcontracting might be needed or needs to be restricted

8. Export Control: Include for services involving cross-border technology or data transfer

9. Local Content Requirements: Add when Saudi local content requirements apply to the services

Suggested Schedules

1. Service Description: Detailed technical and operational specifications of services

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

3. Pricing and Payment Schedule: Detailed fee structure, payment milestones, and calculation methods

4. Data Processing Agreement: Detailed data protection obligations and procedures

5. Security Requirements: Specific security protocols and standards to be followed

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

7. Transition Plan: Detailed timeline and responsibilities for service implementation

8. Governance and Reporting: Meeting schedules, reporting formats, and escalation procedures

9. Key Personnel: Details of key staff members and their qualifications

10. Exit Plan: Procedures and responsibilities for service termination and transition out

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Acceptance Criteria
Affiliate
Agreement
Applicable Law
Business Day
Business Hours
Change Control Procedure
Charges
Commencement Date
Confidential Information
Contract Year
Customer
Customer Data
Customer Materials
Deliverables
Disaster Recovery Plan
Documentation
Effective Date
Emergency
Exit Plan
Force Majeure Event
Good Industry Practice
Governance Procedures
Initial Term
Intellectual Property Rights
Key Personnel
KPIs
Material Breach
Milestone
Notice
Personal Data
Project Plan
Regulatory Requirements
Renewal Term
Reports
Representative
Service Credits
Service Hours
Service Levels
Services
Service Provider
Service Provider Personnel
Service Provider System
Sharia Compliant
Site
Software
Specifications
Subcontractor
Term
Termination Date
Transition Period
Transition Plan
VAT
Working Hours
Work Product
Clauses
Services Scope
Term and Duration
Service Levels
Performance Standards
Fees and Payment
Invoicing
Data Protection
Confidentiality
Intellectual Property
Personnel
Subcontracting
Compliance
Audit Rights
Warranties
Indemnification
Limitation of Liability
Insurance
Force Majeure
Termination
Exit Management
Transition Services
Change Control
Dispute Resolution
Governing Law
Assignment
Notice
Amendments
Entire Agreement
Severability
Business Continuity
Security Requirements
Regulatory Compliance
Anti-Corruption
Local Content Requirements
Non-Solicitation
Records and Reports
Relationship Management
Risk Allocation
Service Credits
Step-In Rights
Technology Requirements
Third Party Rights
Waiver
Asset Management
Quality Control
Training
Documentation
Relevant Industries

Information Technology

Business Process Services

Financial Services

Healthcare

Manufacturing

Telecommunications

Oil & Gas

Construction

Retail

Education

Professional Services

Government Services

Transportation & Logistics

Relevant Teams

Legal

Procurement

Operations

Finance

Information Technology

Compliance

Risk Management

Information Security

Vendor Management

Project Management

Commercial

Supply Chain

Business Development

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Chief Financial Officer

Chief Technology Officer

Chief Legal Officer

Procurement Manager

Contract Manager

Operations Director

Legal Counsel

Compliance Officer

Project Manager

Vendor Management Officer

Risk Manager

Information Security Officer

Service Delivery Manager

Business Unit Head

Commercial Director

Supply Chain Manager

Industries
Saudi Labor Law (Royal Decree No. M/51): Governs employment relationships, working conditions, and rights of workers. Relevant for ensuring outsourcing arrangements don't violate labor rights.
Personal Data Protection Law (PDPL): Regulates the collection, processing, and transfer of personal data. Essential for data handling aspects of outsourcing services.
Cloud Computing Regulatory Framework: Governs cloud services and data hosting requirements in Saudi Arabia, relevant for digital service outsourcing.
Anti-Commercial Fraud Law: Ensures transparency and prevents fraudulent practices in commercial transactions, including service agreements.
Commercial Courts Law: Provides framework for resolving commercial disputes and contract enforcement mechanisms.
Foreign Investment Law: Regulates foreign business activities and investments in Saudi Arabia, relevant for international service providers.
Value Added Tax (VAT) Law: Governs taxation aspects of service agreements and cross-border transactions.
Saudi Competition Law: Ensures fair competition and prevents monopolistic practices in service provision.
Cybersecurity Regulatory Framework: Sets standards for information security and cybersecurity measures in business operations.
Electronic Transactions Law: Governs electronic contracts and digital signatures, relevant for modern service agreements.
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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