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It Outsourcing Agreement

It Outsourcing Agreement Template for New Zealand

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Key Requirements PROMPT example:

It Outsourcing Agreement

"I need an IT Outsourcing Agreement for my fintech company based in Auckland to engage a cloud services provider for managing our data center operations and cybersecurity services, with the contract starting March 2025 and including specific provisions for financial services compliance."

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Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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
Business Day
Business Hours
Change Control
Change Request
Charges
Commencement Date
Confidential Information
Contract Year
Customer Data
Customer Materials
Data Protection Laws
Deliverables
Disaster Recovery Plan
Documentation
Effective Date
Emergency Maintenance
Exit Plan
Force Majeure Event
Good Industry Practice
Governance Procedures
Implementation Plan
Incident
Initial Term
Intellectual Property Rights
Key Personnel
Key Performance Indicators
Maintenance Window
Material Breach
Milestone
Notice
Personal Data
Personnel
Planned Maintenance
Project
Related Agreements
Renewal Term
Reports
Resolution Time
Response Time
Schedule
Security Requirements
Service Credits
Service Levels
Services
Software
Specification
Subcontractor
Support Services
System
Term
Third Party Materials
Transition Period
Transition Plan
Vendor
Work Product
Clauses
Interpretation
Definitions
Term and Renewal
Services Scope
Service Levels
Performance Monitoring
Customer Obligations
Provider Obligations
Personnel
Subcontracting
Change Control
Pricing and Payment
Invoicing
Tax
Data Protection
Privacy
Information Security
Confidentiality
Intellectual Property
License Grant
Warranties
Service Credits
Liability
Indemnification
Insurance
Force Majeure
Business Continuity
Disaster Recovery
Governance
Audit Rights
Compliance
Anti-Bribery
Assignment
Termination
Exit Management
Transition Services
Dispute Resolution
Notices
Governing Law
Jurisdiction
Entire Agreement
Variation
Severability
Waiver
Third Party Rights
Counterparts
Relevant Industries

Information Technology

Financial Services

Healthcare

Retail

Manufacturing

Professional Services

Government

Education

Telecommunications

Insurance

Banking

E-commerce

Logistics

Utilities

Relevant Teams

Legal

Information Technology

Procurement

Risk and Compliance

Information Security

Operations

Finance

Commercial

Vendor Management

Service Delivery

Data Protection

Project Management

Relevant Roles

Chief Information Officer

IT Director

Procurement Manager

Legal Counsel

Contract Manager

Information Security Officer

Risk Manager

Technology Manager

Operations Director

Chief Technology Officer

Vendor Manager

Service Delivery Manager

Commercial Manager

Chief Financial Officer

Data Protection Officer

IT Project Manager

Industries
Privacy Act 2020: Governs how personal information is collected, used, stored and disclosed. Critical for IT outsourcing as it often involves data handling and transfer.
Contract and Commercial Law Act 2017: Provides the fundamental framework for contract formation, electronic transactions, and commercial relationships in New Zealand.
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, particularly important for software development, code ownership, and digital content creation.
Employment Relations Act 2000: May be relevant if the outsourcing arrangement involves transfer of employees or contractor relationships.
Consumer Guarantees Act 1993: Applies if the client is a consumer rather than a business, ensuring quality of services and consumer rights.
Electronic Transactions Act 2002: Facilitates the use of electronic transactions and ensures their legal validity.
Overseas Investment Act 2005: May be relevant if the outsourcing arrangement involves foreign service providers or significant asset transfers.
Companies Act 1993: Relevant for understanding the legal status and obligations of the contracting parties.
Crimes Act 1961: Sections relating to computer crimes and fraud are relevant for security obligations and data protection measures.
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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