The Outsourcing Service Level Agreement is a critical document used when organizations in Saudi Arabia engage external providers for specific services or operations. It is particularly relevant in today's business environment where companies increasingly rely on specialized service providers for various functions while ensuring compliance with Saudi regulations and Sharia law. This document establishes clear performance metrics, service standards, and operational requirements while addressing specific Saudi Arabian legal considerations including data protection, labor laws, and local business practices. It includes comprehensive details about service delivery, performance measurement, pricing, governance, and risk management, making it essential for both service providers and customers in establishing clear expectations and accountability in their business relationship.
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1. Parties: Identification of the service provider and customer, including official registration details as required by Saudi law
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Detailed definitions of terms used throughout the agreement, including technical and legal terminology
4. Scope of Services: Detailed description of services to be provided, including core obligations and deliverables
5. Service Levels and KPIs: Specific performance metrics, measurement methods, and reporting requirements
6. Term and Renewal: Duration of the agreement, renewal terms, and notice periods
7. Charges and Payment: Pricing, payment terms, invoicing procedures, and VAT considerations
8. Service Provider Obligations: Detailed responsibilities and commitments of the service provider
9. Customer Obligations: Responsibilities and commitments required from the customer
10. Data Protection and Security: Compliance with Saudi data protection laws and security requirements
11. Confidentiality: Protection of confidential information and trade secrets
12. Intellectual Property Rights: Ownership and usage rights of IP created or used during service provision
13. Liability and Indemnification: Limitation of liability and indemnification provisions compliant with Saudi law
14. Force Majeure: Events beyond parties' control and their consequences
15. Termination: Grounds for termination, notice requirements, and consequences
16. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction details
17. Dispute Resolution: Process for resolving disputes, including Saudi court jurisdiction or arbitration
18. General Provisions: Standard boilerplate clauses adapted to Saudi law requirements
1. Transition Services: Details of knowledge transfer and transition arrangements, used when complex service handover is required
2. Business Continuity: Disaster recovery and business continuity requirements, essential for critical services
3. Insurance: Specific insurance requirements, important for high-risk services
4. Environmental Compliance: Environmental obligations and compliance requirements, relevant for services with environmental impact
5. Staff and Subcontractors: Requirements for service provider personnel and subcontractor usage, important when specific expertise or Saudization requirements apply
6. Change Control: Procedures for managing changes to services or terms, useful for long-term or complex agreements
7. Audit Rights: Customer's rights to audit service provider's performance and compliance, important for regulated industries
8. Islamic Finance Compliance: Specific provisions ensuring compliance with Islamic finance principles, necessary when financial services are involved
1. Service Description: Detailed technical specifications of services to be provided
2. Service Levels: Detailed metrics, measurement methods, and reporting requirements
3. Charges: Detailed pricing structure, including rate cards and payment calculations
4. Key Personnel: List of key staff members and their roles
5. Technical Requirements: Specific technical standards and requirements
6. Security Requirements: Detailed security protocols and compliance requirements
7. Data Processing Agreement: Specific terms for handling personal data in compliance with Saudi law
8. Business Continuity Plan: Detailed procedures for ensuring service continuity
9. Exit Plan: Detailed procedures for service termination and transition
10. Approved Subcontractors: List of approved subcontractors and their roles
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