The IT Outsourcing Agreement is designed for organizations in New Zealand seeking to engage external providers for their information technology services. This contract type is essential when a business wants to delegate its IT functions to specialized service providers while maintaining control over service quality and risk management. The agreement addresses crucial elements such as service definitions, performance metrics, data handling, security requirements, and compliance with New Zealand regulations including the Privacy Act 2020 and Contract and Commercial Law Act 2017. It's particularly relevant in today's digital business environment where organizations increasingly rely on external expertise for their IT needs while ensuring proper governance and risk management. The document includes comprehensive provisions for service delivery, performance monitoring, data protection, intellectual property rights, and exit management.
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1. Parties: Identifies the contracting parties including full legal names, addresses, and company registration details
2. Background: Sets out the context of the agreement, including the client's objectives and supplier's expertise
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules
4. Term and Renewal: Specifies the initial term, renewal options, and notice periods for extension
5. Services: Defines the scope of services, service levels, and performance standards
6. Service Provider Obligations: Details the provider's key responsibilities, warranties, and commitments
7. Customer Obligations: Specifies the customer's responsibilities and requirements for cooperation
8. Charges and Payment: Details the fee structure, payment terms, and invoicing procedures
9. Governance and Service Management: Establishes management structure, reporting requirements, and review processes
10. Data Protection and Security: Addresses data privacy, security requirements, and compliance obligations
11. Intellectual Property Rights: Deals with ownership and licensing of IP, including pre-existing and newly created IP
12. Confidentiality: Sets out obligations regarding confidential information protection
13. Liability and Indemnities: Specifies liability limitations and indemnification obligations
14. Force Majeure: Addresses circumstances beyond parties' control affecting performance
15. Termination: Details termination rights, process, and consequences
16. General Provisions: Includes standard boilerplate clauses like notices, assignment, and governing law
1. Transition Services: Used when specific provisions are needed for service transition at the start or end of the contract
2. Business Continuity and Disaster Recovery: Detailed requirements for ensuring service continuity in crisis situations
3. Multi-vendor Provisions: Required when multiple service providers need to collaborate
4. Change Control: Detailed procedures for managing changes to services or contract terms
5. Benchmarking: Provisions for comparing services and prices against market standards
6. Step-in Rights: Allows customer to take over services in specific circumstances
7. Asset Transfer: Required when physical or digital assets are being transferred
8. Staff Transfer: Needed when employees are being transferred between parties
9. Parent Company Guarantee: Used when additional financial security is required
10. Anti-Bribery and Modern Slavery: Additional compliance requirements for international arrangements
1. Service Description: Detailed technical specifications of all services to be provided
2. Service Levels and KPIs: Specific performance metrics, measurement methods, and remedies
3. Pricing and Payment Schedule: Detailed pricing models, rates, and payment calculations
4. Governance Procedures: Detailed procedures for contract management and oversight
5. Security Requirements: Specific security standards, protocols, and compliance requirements
6. Business Continuity Plan: Detailed procedures for maintaining service in emergency situations
7. Transition Plan: Detailed timeline and responsibilities for service transition
8. Data Processing Agreement: Specific terms for handling personal data in compliance with privacy laws
9. Exit Plan: Detailed procedures for contract termination and service transfer
10. Approved Subcontractors: List of approved third-party providers and their roles
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