The Outsourcing Service Level Agreement is essential for businesses operating in Indonesia that seek to outsource specific functions or services to external providers. This document is particularly relevant in the context of Indonesian business practices and regulatory framework, where outsourcing arrangements are subject to strict regulatory oversight under Law No. 13 of 2003 on Manpower and Minister of Manpower and Transmigration Regulation No. 19 of 2012. The agreement serves to define the scope of outsourced services, establish performance metrics, ensure compliance with local labor laws, and protect both parties' interests while maintaining transparency in service delivery and pricing. It is crucial for businesses to have this agreement in place to ensure legal compliance, clear service expectations, and proper risk allocation in outsourcing relationships.
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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: Detailed definitions of technical terms, service-related concepts, and key phrases used throughout the agreement
4. Scope of Services: Detailed description of outsourced services, including specific activities, deliverables, and exclusions
5. Term and Renewal: Duration of the agreement, commencement date, and renewal terms
6. Service Levels: Specific performance metrics, KPIs, and measurement criteria for service delivery
7. Pricing and Payment Terms: Fee structure, payment schedule, invoicing procedures, and any performance-related pricing adjustments
8. Personnel and Management: Requirements for personnel qualifications, training, and management structure
9. Compliance with Laws: Obligations to comply with Indonesian labor laws, outsourcing regulations, and other applicable legislation
10. Confidentiality: Protection of confidential information and trade secrets
11. Data Protection: Requirements for handling and protecting customer data and personal information
12. Intellectual Property: Ownership and usage rights of IP created during service delivery
13. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations
14. Termination: Grounds for termination, notice requirements, and consequences of termination
15. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law provisions
1. Business Continuity: Procedures for ensuring service continuity during disruptions, used when services are critical to client operations
2. Knowledge Transfer: Process for transferring knowledge and documentation, important when complex processes are involved
3. Environmental Compliance: Environmental protection requirements, relevant for services with environmental impact
4. Insurance: Specific insurance requirements beyond standard coverage, used for high-risk services
5. Security Requirements: Additional security measures and protocols, crucial for services involving sensitive information
6. Transition Services: Procedures for service transition at start and end of contract, important for complex service arrangements
7. Subcontracting: Terms for engaging subcontractors, when service provider may need to subcontract certain functions
8. Force Majeure: Specific provisions for unforeseen events, particularly relevant in long-term or critical service arrangements
1. Schedule A - Service Description: Detailed technical specifications of services and delivery requirements
2. Schedule B - Service Levels and KPIs: Detailed metrics, measurement methods, and reporting requirements
3. Schedule C - Pricing and Payment Schedule: Detailed fee structure, payment terms, and pricing calculations
4. Schedule D - Personnel Requirements: Specific qualifications, experience requirements, and key personnel
5. Schedule E - Compliance Requirements: Detailed regulatory compliance requirements specific to the services
6. Schedule F - Operational Procedures: Day-to-day operational procedures and protocols
7. Schedule G - Required Reports: Templates and specifications for required service reports
8. Appendix 1 - Contact Details: Key contact persons and escalation matrix
9. Appendix 2 - Security Protocols: Detailed security requirements and procedures
10. Appendix 3 - Exit Plan Template: Template for developing the exit plan upon termination
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