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Outsourcing Agreement Between Two Companies Template for Indonesia

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Key Requirements PROMPT example:

Outsourcing Agreement Between Two Companies

"I need an Outsourcing Agreement Between Two Companies for IT support services in Indonesia, where my tech company will provide 24/7 helpdesk and infrastructure management services to a manufacturing company, starting March 2025, with strict data protection and cybersecurity requirements."

Document background
The Outsourcing Agreement Between Two Companies is a crucial document used when one company (service recipient) wishes to outsource specific business functions or processes to another company (service provider) in Indonesia. This agreement has become increasingly important following the implementation of the Omnibus Law (Law No. 11 of 2020), which introduced significant changes to Indonesia's outsourcing regulations. The document must comply with strict Indonesian legal requirements, including mandatory dual-language provisions and specific labor law compliance measures. It is typically used when establishing long-term business relationships involving service provision, and includes detailed provisions for service delivery, performance standards, personnel management, intellectual property protection, and risk allocation. The agreement needs to address both operational and legal aspects while ensuring protection for both parties' interests under Indonesian jurisdiction.
Suggested Sections

1. Parties: Identification of the service provider and service recipient, including their legal status and registration details

2. Background: Context of the agreement and brief description of the parties' business relationship

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

4. Scope of Services: Detailed description of outsourced services and delivery requirements

5. Term and Renewal: Duration of the agreement and conditions for renewal

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

7. Service Recipient Obligations: Responsibilities and commitments of the service recipient

8. Fees and Payment Terms: Pricing structure, payment schedule, and related financial terms

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

10. Personnel and Employment: Requirements regarding staffing, qualifications, and compliance with Indonesian labor laws

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. Data Protection: Data handling, privacy requirements, and compliance measures

14. Liability and Indemnification: Allocation of risks and responsibilities between parties

15. Termination: Conditions and procedures for ending the agreement

16. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

17. General Provisions: Standard legal provisions including notices, amendments, and language requirements

Optional Sections

1. Business Continuity and Disaster Recovery: Required for critical services or when handling sensitive data

2. Transition Services: Include when complex handover or exit procedures are needed

3. Insurance Requirements: Detailed insurance obligations for high-risk services

4. Anti-Corruption Compliance: Required when dealing with government contracts or high-risk sectors

5. Environmental Compliance: Include for services with environmental impact

6. Security Requirements: Required when handling sensitive information or accessing secure facilities

7. Change Control Procedures: Include for complex services requiring frequent modifications

8. Force Majeure: Detailed provisions for unforeseen circumstances, particularly relevant post-COVID

Suggested Schedules

1. Schedule 1 - Service Specifications: Detailed technical specifications of services to be provided

2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics and measurement methodology

3. Schedule 3 - Fee Schedule: Detailed pricing, payment terms, and cost calculations

4. Schedule 4 - Personnel Requirements: Specific staffing requirements, qualifications, and training needs

5. Schedule 5 - Approved Subcontractors: List of pre-approved subcontractors if applicable

6. Schedule 6 - Technical Requirements: IT systems, infrastructure, and technical specifications

7. Schedule 7 - Data Processing Agreement: Detailed data handling and privacy requirements

8. Schedule 8 - Transition Plan: Detailed implementation or handover procedures

9. Appendix A - Required Forms and Templates: Standard forms for reporting, requests, and communications

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 | Serial Founder & Legal AI Author

Relevant legal definitions












































Clauses









































Relevant Industries

Information Technology

Manufacturing

Business Process Outsourcing

Financial Services

Healthcare

Telecommunications

Logistics and Supply Chain

Human Resources

Customer Service

Facilities Management

Research and Development

Engineering Services

Relevant Teams

Legal

Operations

Human Resources

Procurement

Finance

Compliance

Risk Management

Quality Assurance

Project Management

Business Development

Technical Operations

Information Security

Vendor Management

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Legal Counsel

Procurement Manager

Operations Director

Human Resources Director

Compliance Officer

Contract Manager

Project Manager

Service Delivery Manager

Business Development Manager

Risk Manager

Finance Director

Technical Operations Manager

Quality Assurance Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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