The Managed Services Agreement is essential for businesses operating in Hong Kong that wish to outsource significant operational functions to external service providers. This document is commonly used when a company needs to establish a long-term service relationship with clear accountability, performance metrics, and governance structures. It addresses key considerations under Hong Kong law, including data privacy compliance, service provider liability, and regulatory requirements. The agreement is particularly relevant in today's business environment where companies increasingly rely on external expertise for critical functions while maintaining control through detailed service levels and operational requirements. It provides comprehensive coverage of service delivery, risk allocation, pricing mechanisms, and exit provisions, suitable for both local Hong Kong operations and international business arrangements.
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1. Parties: Identification of service provider and customer, including registered addresses
2. Background: Context of the agreement and brief description of the services to be provided
3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation
4. Appointment and Term: Formal appointment of service provider and duration of the agreement
5. Services: Detailed description of services scope and delivery requirements
6. Service Provider Obligations: Key responsibilities and commitments of the service provider
7. Customer Obligations: Customer's responsibilities and commitments to enable service delivery
8. Personnel: Requirements for service provider staff, including key personnel provisions
9. Change Control: Process for managing changes to services or agreement terms
10. Charges and Payment: Pricing, payment terms, and invoicing procedures
11. Service Levels and Service Credits: Performance standards and remedies for failure to meet them
12. Governance and Reporting: Management structure, meetings, and reporting requirements
13. Data Protection and Security: Compliance with Hong Kong PDPO and security requirements
14. Intellectual Property Rights: Ownership and licensing of IP used and created in service delivery
15. Confidentiality: Protection of confidential information and trade secrets
16. Liability and Insurance: Limitation of liability, indemnities, and insurance requirements
17. Force Majeure: Handling of events outside parties' reasonable control
18. Termination: Grounds for termination and termination process
19. Exit and Migration: Requirements for service transition upon termination
20. General: Standard boilerplate provisions including governing law and jurisdiction
1. Regulatory Compliance: Required if services are subject to specific regulatory requirements in Hong Kong
2. Business Continuity and Disaster Recovery: Required for critical services or where customer has specific resilience requirements
3. Environmental, Social and Governance (ESG): Include if parties have specific ESG commitments or requirements
4. Anti-Bribery and Corruption: Required for high-value contracts or where parties have specific compliance policies
5. Parent Company Guarantee: Include if service provider's parent company guarantee is required
6. Foreign Currency Provisions: Required if charges are in currency other than Hong Kong Dollars
7. Sub-contracting: Include if service provider will use subcontractors
8. Asset Transfer: Required if agreement involves transfer of assets between parties
1. Services Description: Detailed specification of services to be provided
2. Service Levels: Detailed service level requirements and measurement methodology
3. Charges: Detailed pricing structure, rates, and payment terms
4. Customer Dependencies: Detailed list of customer-provided items and responsibilities
5. Key Personnel: Names and roles of key service provider staff
6. Security Requirements: Detailed security policies and requirements
7. Data Protection Requirements: Detailed data handling and protection requirements
8. Governance Procedures: Detailed governance structure and processes
9. Change Control Procedure: Detailed process for managing changes
10. Exit Plan: Detailed requirements for service transition upon termination
11. Form of Parent Company Guarantee: Standard form of parent company guarantee if required
12. Business Continuity and Disaster Recovery Plan: Detailed continuity and recovery procedures
Authors
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Business Process Outsourcing
Facilities Management
Healthcare
Financial Services
Manufacturing
Retail
Telecommunications
Professional Services
Real Estate
Education
Transportation and Logistics
Relevant Teams
Legal
Procurement
Information Technology
Operations
Finance
Risk and Compliance
Vendor Management
Facilities Management
Commercial
Service Delivery
Relevant Roles
Chief Information Officer
Chief Technology Officer
Head of Procurement
General Counsel
Legal Counsel
Procurement Manager
Vendor Management Lead
Operations Director
IT Director
Facilities Manager
Commercial Manager
Contract Manager
Chief Financial Officer
Risk Manager
Compliance Officer
Service Delivery Manager
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