This Outsourcing Agreement template is designed for use under Australian law when an organization seeks to engage an external service provider to perform specific business functions or services. The agreement is suitable for various outsourcing arrangements, from IT services to business process outsourcing, and incorporates provisions addressing Australian regulatory requirements including the Privacy Act 1988 (Cth), Competition and Consumer Act 2010 (Cth), and relevant industry-specific regulations. The document provides a comprehensive framework covering service delivery, performance standards, risk allocation, data protection, intellectual property rights, and operational governance. It includes necessary safeguards and compliance mechanisms required under Australian law, making it suitable for both domestic and international outsourcing arrangements where Australian law is the governing law.
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1. Parties: Identifies the contracting parties - typically the customer and service provider
2. Background: Sets out the context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Services: Describes the scope of services to be provided and service delivery requirements
5. Service Levels: Specifies performance standards, KPIs, and measurement methodology
6. Charges and Payment: Details the fee structure, payment terms, and invoicing procedures
7. Term and Termination: Specifies contract duration, renewal options, and termination rights
8. Transition and Implementation: Outlines the process for transitioning services to the provider
9. Governance and Management: Establishes oversight framework, reporting requirements, and meeting cadence
10. Data Protection and Privacy: Sets out obligations for handling personal and confidential information
11. Intellectual Property Rights: Addresses ownership and licensing of IP created or used in service delivery
12. Security Requirements: Specifies information security and physical security requirements
13. Business Continuity: Details disaster recovery and business continuity obligations
14. Liability and Indemnities: Allocates risks and establishes liability caps and indemnification obligations
15. Insurance: Specifies required insurance coverage
16. General Provisions: Contains standard boilerplate clauses including governing law, notices, and assignment
1. Personnel and Key Personnel: Used when specific personnel requirements or key staff commitments need to be documented
2. Asset Transfer: Required when the arrangement involves transfer of assets between parties
3. TUPE/Employee Transfer: Needed when employees may transfer as part of the outsourcing arrangement
4. Parent Company Guarantee: Include when requiring financial backing from the provider's parent company
5. Change Control: Detailed change management procedures for complex or long-term arrangements
6. Benchmarking: Include for long-term contracts where market testing of services/prices is required
7. Step-in Rights: Used for critical services where the customer may need to take over operations
8. Audit Rights: Detailed audit provisions for regulated industries or complex services
9. Export Control: Required when services involve cross-border data or technology transfers
1. Service Description: Detailed specification of services, including scope, deliverables, and technical requirements
2. Service Levels and Service Credits: Detailed SLA metrics, measurement methods, and service credit calculations
3. Charges: Detailed pricing, rate cards, and charging mechanisms
4. Transition Plan: Detailed timeline and responsibilities for service transition
5. Security Requirements: Detailed security policies, standards, and compliance requirements
6. Governance Procedures: Detailed procedures for contract management, escalation, and reporting
7. Business Continuity Plan: Detailed recovery procedures and contingency arrangements
8. Key Personnel: Details of key staff and their roles/responsibilities
9. Approved Subcontractors: List of approved subcontractors and their roles
10. Form of Parent Company Guarantee: Standard form guarantee document
11. Exit Plan: Detailed procedures and responsibilities for service termination and transition out
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Business Process Operations
Financial Services
Healthcare
Manufacturing
Telecommunications
Professional Services
Retail
Energy and Utilities
Transportation and Logistics
Education
Relevant Teams
Legal
Procurement
Operations
Information Technology
Finance
Risk and Compliance
Commercial
Project Management
Vendor Management
Information Security
Relevant Roles
Chief Executive Officer
Chief Operating Officer
Chief Financial Officer
Chief Information Officer
Chief Technology Officer
Head of Procurement
Head of Legal
Commercial Director
Operations Director
Procurement Manager
Contract Manager
Legal Counsel
Risk Manager
Compliance Officer
Project Manager
Vendor Manager
Operations Manager
Service Delivery Manager
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