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Outsourcing Service Agreement
"I need an Outsourcing Service Agreement for my Jakarta-based manufacturing company to engage an Indonesian service provider for facilities management and cleaning services, with service commencement planned for March 2025."
1. Parties: Identification of the service provider and service recipient, including their complete legal names, registration numbers, and addresses
2. Background: Context of the agreement, business relationship, and purpose of the outsourcing arrangement
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Scope of Services: Detailed description of the outsourced services to be provided, ensuring compliance with Indonesian regulations on permissible outsourcing activities
5. Term and Renewal: Duration of the agreement, commencement date, and renewal terms
6. Service Provider's Obligations: Comprehensive list of service provider's responsibilities, including compliance with Indonesian labor laws
7. Service Recipient's Obligations: Responsibilities and obligations of the service recipient, including provision of access and information
8. Personnel Requirements: Specifications regarding the qualification, training, and management of outsourced personnel
9. Performance Standards: Service levels, quality metrics, and performance measurement criteria
10. Fees and Payment Terms: Pricing structure, payment schedule, invoicing requirements, and tax considerations
11. Compliance with Laws: Obligations to comply with Indonesian labor laws, social security requirements, and other relevant regulations
12. Confidentiality: Protection of confidential information and trade secrets
13. Intellectual Property Rights: Ownership and usage rights of IP created during service provision
14. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations
15. Termination: Grounds for termination, notice requirements, and consequences of termination
16. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law provisions
17. General Provisions: Standard boilerplate clauses including notices, amendments, and language requirements per Law No. 24 of 2009
1. Insurance: Required when specific insurance coverage needs to be maintained by either party
2. Data Protection: Required when personal data processing is involved in service delivery
3. Business Continuity: Required for critical services requiring disaster recovery and business continuity planning
4. Change Control: Required for complex services where formal processes for changes to services are needed
5. Transition Services: Required when complex handover or exit transition periods are necessary
6. Anti-Bribery and Corruption: Required when dealing with government contracts or multinational corporations
7. Force Majeure: Optional but recommended for long-term agreements to address unforeseen circumstances
8. Non-Competition: Required when there are specific competitive concerns to be addressed
9. Security Requirements: Required when services involve access to sensitive systems or facilities
1. Schedule 1 - Service Specifications: Detailed description of services, deliverables, and technical requirements
2. Schedule 2 - Service Levels and KPIs: Specific performance metrics, measurement methods, and reporting requirements
3. Schedule 3 - Fee Schedule: Detailed pricing structure, rate cards, and payment terms
4. Schedule 4 - Personnel Requirements: Qualifications, experience levels, and specific requirements for key personnel
5. Schedule 5 - Approved Subcontractors: List of pre-approved subcontractors if applicable
6. Schedule 6 - Implementation Plan: Timeline and milestones for service implementation
7. Schedule 7 - Contact Details and Escalation Matrix: Key contact persons and escalation procedures
8. Schedule 8 - Required Insurance Coverage: Specific insurance types and coverage amounts
9. Appendix A - Form of Performance Report: Template for regular performance reporting
10. Appendix B - Security Protocols: Detailed security procedures and requirements
Authors
Information Technology
Manufacturing
Business Process Operations
Facilities Management
Human Resources
Logistics and Supply Chain
Customer Service
Financial Services
Healthcare
Telecommunications
Retail
Industrial Services
Mining and Resources
Construction
Legal
Procurement
Operations
Human Resources
Compliance
Risk Management
Finance
Supply Chain
Business Development
Facilities Management
Contract Administration
Project Management Office
Chief Executive Officer
Chief Operating Officer
Chief Financial Officer
Legal Counsel
Procurement Manager
Operations Director
Human Resources Director
Compliance Officer
Contract Manager
Project Manager
Facility Manager
Supply Chain Manager
Risk Manager
Business Development Manager
General Counsel
Operations Manager
Service Delivery Manager
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