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IT Outsourcing Agreement Template for England and Wales

An IT Outsourcing Agreement is a comprehensive legal document governed by the laws of England and Wales that establishes the terms and conditions under which an organization outsources its information technology functions to a specialist service provider. The agreement covers service delivery, performance standards, data protection, intellectual property rights, liability allocation, and termination provisions, while ensuring compliance with UK legislation including GDPR, TUPE, and relevant IT laws.

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What is a IT Outsourcing Agreement?

IT Outsourcing Agreements are essential for organizations looking to delegate their IT functions to specialist providers while maintaining control over service quality and risk management. This contract type, governed by English and Welsh law, defines the relationship between the customer and service provider, establishing clear responsibilities, performance metrics, and compliance requirements. The agreement typically includes provisions for service delivery, data protection, intellectual property rights, employee transfers, and exit management, ensuring both parties' interests are protected throughout the outsourcing relationship.

What sections should be included in a IT Outsourcing Agreement?

1. Parties: Identifies contracting parties and their registered details

2. Background: Context of the agreement and high-level business objectives

3. Definitions: Key terms used throughout the agreement

4. Services: Detailed description of IT services to be provided

5. Service Levels: Performance standards and measurement criteria

6. Charges and Payment: Pricing, payment terms, and invoicing arrangements

7. Data Protection: Obligations regarding personal data processing

8. Intellectual Property Rights: Ownership and licensing of IP

9. Confidentiality: Protection of confidential information

10. Term and Termination: Duration and termination provisions

What sections are optional to include in a IT Outsourcing Agreement?

1. TUPE: Required if employees will transfer between providers

2. Foreign Law Compliance: Additional obligations for cross-border services

3. Change Control: Process for managing changes to services

4. Business Continuity: Disaster recovery and business continuity requirements

What schedules should be included in a IT Outsourcing Agreement?

1. Service Description: Detailed specification of services and deliverables

2. Service Levels: Detailed performance metrics and measurement methods

3. Charges: Detailed pricing structure and payment mechanisms

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

5. Exit Plan: Procedures for service transition upon termination

6. Staff Transfer Provisions: TUPE-related information and obligations

7. Security Requirements: Detailed security standards and procedures

8. Business Continuity Plan: Detailed recovery procedures and responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Cost

Free to use

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