Outsourcing Services Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Outsourcing Services Contract

"I need an Outsourcing Services Contract for IT support services to be provided by a Malaysian company to our Saudi Arabian operations, with specific provisions for data protection and cross-border service delivery, to be effective from March 1, 2025."

Document background
The Outsourcing Services Contract is essential for organizations engaging external service providers in Saudi Arabia. This document is particularly relevant in today's business environment where companies increasingly rely on specialized external providers for various business functions. The contract must comply with Saudi Arabian law, including the Commercial Courts Law, Labor Law, and Data Protection regulations, while adhering to Sharia principles. It is designed to protect both parties' interests by clearly defining service scope, performance standards, pricing, and risk allocation. The document is crucial for organizations looking to outsource any business function, from IT services to facilities management, and includes specific provisions for data protection, intellectual property rights, and service level agreements. It becomes especially important when dealing with cross-border service provision, where compliance with local regulations and Saudization requirements must be carefully considered.
Suggested Sections

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

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

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

4. Scope of Services: Detailed description of the services to be provided, including specific deliverables and exclusions

5. Term and Commencement: Duration of the agreement, effective date, and any renewal provisions

6. Service Provider Obligations: Detailed responsibilities and commitments of the service provider

7. Client Obligations: Responsibilities and commitments of the client, including provision of necessary information and access

8. Fees and Payment Terms: Pricing structure, payment schedule, invoicing procedures, and any applicable taxes

9. Service Levels: Performance standards, KPIs, and measurement criteria

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

11. Confidentiality: Protection of confidential information and trade secrets

12. Data Protection: Compliance with Saudi data protection laws and data handling requirements

13. Intellectual Property Rights: Ownership and usage rights of pre-existing and newly created IP

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

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

16. Dispute Resolution: Process for resolving disputes under Saudi law, including jurisdiction and governing law

Optional Sections

1. Change Control: Procedures for managing changes to services or contract terms - include when services are likely to evolve

2. Business Continuity: Disaster recovery and business continuity requirements - include for critical services

3. Compliance with Saudization Requirements: Specific provisions regarding Saudi national employment quotas - include when relevant to service delivery

4. Security Requirements: Specific security protocols and requirements - include for services involving sensitive data or systems

5. Transition Services: Procedures for service transition at start and end of contract - include for complex service arrangements

6. Sub-contracting: Rules and restrictions on sub-contracting - include when sub-contracting may be needed

7. Force Majeure: Provisions for unforeseen circumstances - include based on risk assessment

8. Anti-corruption Compliance: Specific anti-corruption provisions - include for high-value or government-related contracts

Suggested Schedules

1. Service Description Schedule: Detailed technical specifications and scope of services

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

3. Pricing and Payment Schedule: Detailed fee structure, payment terms, and pricing calculations

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

5. Technical Requirements: Specific technical standards, systems, and infrastructure requirements

6. Data Processing Agreement: Detailed data handling procedures and compliance requirements

7. Security Policies: Specific security protocols and requirements

8. Transition Plan: Detailed procedures for service implementation or transition

9. Business Continuity Plan: Detailed disaster recovery and business continuity procedures

10. Change Request Template: Standard format for requesting and documenting changes to services

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

Manufacturing

Healthcare

Financial Services

Telecommunications

Energy and Utilities

Professional Services

Logistics and Supply Chain

Real Estate and Facilities Management

Education

Retail

Relevant Teams

Legal

Procurement

Operations

Information Technology

Finance

Compliance

Risk Management

Commercial

Vendor Management

Project Management

Human Resources

Business Development

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Chief Financial Officer

General Counsel

Legal Director

Procurement Manager

Vendor Management Director

Operations Director

IT Director

Compliance Officer

Risk Manager

Commercial Manager

Contract Manager

Project Manager

Service Delivery Manager

Business Unit Head

Finance Manager

Human Resources Director

Industries
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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