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Business Outsourcing Agreement

Business Outsourcing Agreement Template for New Zealand

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Key Requirements PROMPT example:

Business Outsourcing Agreement

"I need a Business Outsourcing Agreement for outsourcing our IT helpdesk services to a New Zealand-based provider starting March 2025, with specific focus on data security requirements and 24/7 service coverage."

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Document background
This Business Outsourcing Agreement template is designed for use in New Zealand business environments where organizations seek to formalize arrangements for the provision of business services by external providers. It is particularly relevant when establishing long-term strategic partnerships for the delivery of critical business functions or services. The agreement incorporates requirements under New Zealand law, including provisions aligned with the Contract and Commercial Law Act 2017, Privacy Act 2020, and relevant industry regulations. It is structured to address key aspects of outsourcing relationships including service levels, performance management, risk allocation, data protection, and transition arrangements. This document type is essential for organizations looking to effectively manage outsourced services while maintaining appropriate control and oversight of service delivery.
Suggested Sections

1. Parties: Identifies and provides details of the contracting parties (service provider and customer)

2. Background: Sets out the context and purpose of the agreement, including the business objectives

3. Definitions and Interpretation: Defines key terms and establishes rules for interpreting the agreement

4. Scope of Services: Defines the services to be provided and any excluded services

5. Term and Renewal: Specifies the initial term, renewal options, and conditions for extension

6. Service Provider Obligations: Details the core obligations, standards, and responsibilities of the service provider

7. Customer Obligations: Outlines the customer's responsibilities and requirements for enabling service delivery

8. Service Levels and Performance: Establishes performance standards, metrics, and measurement methodology

9. Fees and Payment: Details the fee structure, payment terms, and invoicing requirements

10. Governance and Reporting: Establishes management structure, reporting requirements, and meeting schedules

11. Personnel and Resources: Addresses key personnel, staffing requirements, and resource allocation

12. Intellectual Property Rights: Establishes ownership and licenses for IP created or used in service delivery

13. Confidentiality and Data Protection: Covers confidentiality obligations and data security requirements

14. Liability and Indemnities: Sets out liability limitations and indemnification obligations

15. Termination: Details termination rights, process, and consequences

16. Exit Management: Outlines the transition process at agreement end or termination

17. General Provisions: Includes standard legal provisions like notices, assignment, and governing law

Optional Sections

1. Business Continuity and Disaster Recovery: Required for critical services or when specific recovery requirements exist

2. Change Control: Needed for complex services likely to require formal change management

3. Regulatory Compliance: Required when services are subject to specific regulatory requirements

4. Security Requirements: Important when handling sensitive data or accessing customer systems

5. Audit Rights: Needed when regular audits or compliance verification is required

6. Anti-Bribery and Corruption: Important for international arrangements or high-risk services

7. Parent Company Guarantee: Required when seeking additional financial security

8. Innovation and Continuous Improvement: Useful for long-term strategic partnerships

9. Environmental and Social Responsibility: Important when sustainability or social impact is a key consideration

Suggested Schedules

1. Service Description: Detailed description of each service component and delivery requirements

2. Service Levels: Comprehensive SLA metrics, measurement methods, and remedies

3. Charges and Pricing: Detailed fee calculations, rate cards, and pricing mechanisms

4. Customer Dependencies: Detailed list of customer-provided items, facilities, and support

5. Key Personnel: Details of key roles, qualifications, and replacement procedures

6. Governance Framework: Detailed governance structure, processes, and escalation procedures

7. Technical Requirements: Technical specifications, standards, and infrastructure requirements

8. Security Standards: Detailed security protocols, requirements, and compliance standards

9. Exit Plan: Detailed transition out procedures, timelines, and responsibilities

10. Business Continuity Plan: Detailed recovery procedures and business continuity requirements

11. Form of Reports: Templates and requirements for regular reporting

12. Approved Subcontractors: List of approved subcontractors and their authorized scope

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Acceptance Criteria
Affiliate
Agreement
Background IP
Business Day
Business Hours
Change Control Procedure
Charges
Commencement Date
Confidential Information
Contract Year
Customer Data
Customer Dependencies
Customer Materials
Deliverables
Dispute Resolution Procedure
Exit Plan
Force Majeure Event
Good Industry Practice
Governance Framework
Initial Term
Intellectual Property Rights
Key Personnel
KPIs
Material Breach
Milestones
New IP
Notice
Personal Data
Personnel
Regulatory Requirements
Related Companies
Renewal Term
Reports
Service Credits
Service Levels
Services
Significant Change
Specification
Subcontractor
Term
Termination Date
Third Party Materials
Transition Period
Transition Plan
Working Hours
Clauses
Service Provision
Performance Standards
Payment
Service Levels
Key Performance Indicators
Change Control
Force Majeure
Confidentiality
Data Protection
Intellectual Property
Personnel
Subcontracting
Governance
Audit Rights
Liability
Indemnification
Insurance
Term and Termination
Exit Management
Dispute Resolution
Assignment
Amendment
Notices
Entire Agreement
Severability
Waiver
Third Party Rights
Compliance with Laws
Anti-Bribery
Business Continuity
Disaster Recovery
Security Requirements
Regulatory Compliance
Records and Reporting
Risk Management
Service Transfer
Warranties
Non-Solicitation
Relationship Management
Governing Law
Jurisdiction
Relevant Industries

Information Technology

Business Process Services

Manufacturing

Financial Services

Healthcare

Telecommunications

Professional Services

Logistics and Supply Chain

Human Resources

Customer Service

Facilities Management

Research and Development

Relevant Teams

Legal

Procurement

Operations

Finance

Information Technology

Risk and Compliance

Commercial

Project Management

Service Delivery

Vendor Management

Business Analysis

Strategy

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Chief Financial Officer

Chief Information Officer

Head of Procurement

Commercial Director

Operations Director

Legal Counsel

Procurement Manager

Contract Manager

Vendor Manager

Operations Manager

Service Delivery Manager

Risk Manager

Compliance Officer

Project Manager

Business Analyst

Financial Controller

Industries
Contract and Commercial Law Act 2017: Provides the fundamental framework for contract formation, interpretation, and enforcement in New Zealand, including electronic transactions and contractual remedies
Privacy Act 2020: Governs the collection, use, storage, and disclosure of personal information, particularly important when outsourcing involves handling customer or employee data
Employment Relations Act 2000: Relevant for understanding implications of outsourcing on existing employees and ensuring compliance with employment transfer provisions
Fair Trading Act 1986: Ensures fair trading practices and prohibits misleading conduct in trade, relevant for service level agreements and performance guarantees
Copyright Act 1994: Protects intellectual property rights and is crucial for determining ownership of work products created during the outsourcing arrangement
Overseas Investment Act 2005: May be relevant if the outsourcing arrangement involves significant assets or overseas service providers
Consumer Guarantees Act 1993: May apply if the outsourcing affects services provided to consumers, ensuring quality and performance standards
Commerce Act 1986: Ensures competition law compliance, particularly relevant for exclusive outsourcing arrangements or market-dominant providers
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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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