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Business Process Outsourcing Agreement

Business Process Outsourcing Agreement Template for New Zealand

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Key Requirements PROMPT example:

Business Process Outsourcing Agreement

"I need a Business Process Outsourcing Agreement for outsourcing our IT helpdesk services to a New Zealand provider, with strong data protection clauses as we handle sensitive customer information, targeting implementation by March 2025."

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Document background
This Business Process Outsourcing Agreement template is designed for use in New Zealand business contexts where an organization seeks to outsource specific business functions to a specialized service provider. The agreement encompasses comprehensive provisions for service delivery, performance measurement, data protection, and risk allocation, while ensuring compliance with New Zealand's legal framework, including privacy laws and commercial regulations. It is particularly suitable for medium to long-term outsourcing arrangements where clear governance, service levels, and operational procedures need to be established. The document includes detailed schedules for service specifications, pricing, and operational procedures, making it adaptable to various business processes while maintaining consistency with New Zealand's legal requirements and commercial practices.
Suggested Sections

1. Parties: Identifies and provides full legal details of the contracting parties

2. Background: Sets out the context and commercial purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Services: Detailed description of the services to be provided and service boundaries

5. Term and Renewal: Duration of the agreement and renewal provisions

6. Service Provider's Obligations: Key responsibilities and commitments of the service provider

7. Customer's Obligations: Key responsibilities and commitments of the customer

8. Service Levels: Performance standards and metrics for service delivery

9. Charges and Payment: Pricing, payment terms, and invoicing procedures

10. Data Protection and Privacy: Obligations regarding data handling, security, and privacy compliance

11. Intellectual Property Rights: Ownership and usage rights of IP created or used in service delivery

12. Confidentiality: Protection and handling of confidential information

13. Personnel and Key Staff: Requirements regarding staff, including key personnel provisions

14. Governance and Reporting: Management structure, meetings, and reporting requirements

15. Liability and Indemnities: Risk allocation between parties and liability limitations

16. Force Majeure: Provisions for handling events beyond parties' reasonable control

17. Termination: Grounds and process for agreement termination

18. Exit Management: Process for service transition upon termination

19. Dispute Resolution: Process for resolving disputes between parties

20. General Provisions: Standard boilerplate clauses including notices, amendment process, and governing law

Optional Sections

1. Change Control: Formal process for managing changes to services or agreement terms - include when significant changes are anticipated

2. Business Continuity: Disaster recovery and business continuity requirements - include for critical business processes

3. Regulatory Compliance: Specific regulatory obligations - include for regulated industries

4. Environmental Requirements: Environmental standards and commitments - include if environmentally sensitive

5. Insurance: Specific insurance requirements - include for high-risk services

6. Anti-Bribery and Corruption: Anti-corruption provisions - include for international services

7. Parent Company Guarantee: Guarantee from service provider's parent company - include for financial security

8. Benchmarking: Process for comparing services against market standards - include for long-term contracts

9. Step-In Rights: Customer's right to take over services - include for critical business functions

10. Security Requirements: Detailed security obligations - include for sensitive data handling

Suggested Schedules

1. Schedule 1 - Services Description: Detailed specification of services to be provided

2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics, measurement methods, and penalties

3. Schedule 3 - Charges: Detailed pricing, payment structure, and rate cards

4. Schedule 4 - Customer Dependencies: Detailed customer obligations and requirements

5. Schedule 5 - Governance and Reporting: Detailed governance structure, meeting schedule, and report formats

6. Schedule 6 - Personnel: Key personnel, qualifications, and staffing requirements

7. Schedule 7 - Security Requirements: Detailed security protocols and requirements

8. Schedule 8 - Exit Plan: Detailed transition-out process and requirements

9. Schedule 9 - Business Continuity Plan: Detailed disaster recovery and business continuity procedures

10. Schedule 10 - Data Processing Agreement: Detailed data protection and privacy requirements

11. Appendix A - Approved Subcontractors: List of approved subcontractors and their roles

12. Appendix B - Form of Change Request: Template for requesting and documenting changes

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
Applicable Law
Background IP
Business Day
Business Hours
Change Control Procedure
Charges
Commencement Date
Confidential Information
Contract Year
Customer
Customer Data
Customer Dependencies
Customer Materials
Data Protection Laws
Deliverables
Disaster Recovery Plan
Dispute Resolution Procedure
Documentation
Emergency
Exit Plan
Force Majeure Event
Good Industry Practice
Governance Body
Initial Term
Intellectual Property Rights
Key Personnel
Material Breach
Milestone
Notice
Personal Data
Personnel
Process/Processing
Regulatory Requirements
Renewal Term
Reports
Security Requirements
Service Credits
Service Levels
Services
Service Provider
Service Provider Materials
Subcontractor
Term
Termination Date
Third Party
Transition Period
Transition Plan
Working Hours
Clauses
Service Provision
Service Levels
Performance Monitoring
Charges and Payment
Data Protection
Confidentiality
Intellectual Property
Personnel
Governance
Change Control
Audit Rights
Compliance
Security
Business Continuity
Force Majeure
Liability
Indemnification
Insurance
Term and Termination
Exit Management
Non-Solicitation
Assignment and Subcontracting
Anti-Bribery
Competition
Dispute Resolution
Notices
Entire Agreement
Severability
Variation
Waiver
Third Party Rights
Governing Law
Jurisdiction
Relevant Industries

Information Technology

Financial Services

Healthcare

Manufacturing

Retail

Telecommunications

Professional Services

Insurance

Banking

Education

Government

Logistics

Human Resources

Customer Service

Relevant Teams

Legal

Procurement

Operations

Finance

Information Technology

Risk & Compliance

Vendor Management

Commercial

Data Protection

Information Security

Service Delivery

Business Analysis

Relevant Roles

Chief Operating Officer

Procurement Manager

Legal Counsel

Commercial Director

Operations Manager

Vendor Management Lead

Risk Manager

Compliance Officer

Finance Director

IT Director

Data Protection Officer

Business Process Manager

Contract Manager

Service Delivery Manager

Chief Financial Officer

Chief Technology Officer

Industries
Privacy Act 2020: Governs how personal information must be collected, used, stored, and disclosed. Critical for BPO agreements involving data processing or storage.
Contract and Commercial Law Act 2017: Provides the fundamental framework for commercial contracts in New Zealand, including electronic transactions and contract formation principles.
Fair Trading Act 1986: Ensures fair business practices and prohibits misleading conduct in trade. Relevant for service level agreements and performance warranties.
Employment Relations Act 2000: Important if the BPO arrangement involves transfer of employees or affects employment relationships.
Electronic Transactions Act 2002: Governs electronic communications and transactions, particularly relevant for digital service delivery and electronic signatures.
Copyright Act 1994: Protects intellectual property rights, important for any software, documentation, or creative works involved in the BPO services.
Overseas Investment Act 2005: May be relevant if the BPO arrangement involves significant foreign investment or control.
Companies Act 1993: Relevant for understanding the legal obligations and capacities of the contracting entities.
Consumer Guarantees Act 1993: May apply if the BPO services ultimately affect consumers or end-users.
Harmful Digital Communications Act 2015: Relevant if the BPO services involve digital communications or social media management.
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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