Managed Services Agreement Template for Pakistan

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Key Requirements PROMPT example:

Managed Services Agreement

"I need a Managed Services Agreement for an IT service provider based in Karachi to provide cloud infrastructure and cybersecurity services to our retail business, with service commencement planned for March 2025 and specific provisions for data protection and disaster recovery."

Document background
The Managed Services Agreement (MSA) is a crucial contract for businesses operating in Pakistan who wish to outsource specific operational functions to specialized service providers. This document is essential when a company wants to establish a long-term service relationship with clear accountability, performance metrics, and governance structures. The agreement is designed to comply with Pakistani legal requirements while incorporating international best practices in service delivery management. It's particularly relevant in the context of Pakistan's growing IT and business services sector, where companies increasingly rely on external expertise for various business functions. The MSA covers all aspects of the service relationship, from service definitions and performance standards to pricing and termination provisions, while ensuring compliance with Pakistani contract law, data protection requirements, and sector-specific regulations.
Suggested Sections

1. Parties: Identification and details of the contracting parties including registered addresses and company registration numbers

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Services: Overview of services to be provided, with reference to detailed service descriptions in schedules

5. Service Levels: Key performance indicators, measurement methods, and consequences of failure to meet service levels

6. Customer Obligations: Responsibilities and obligations of the customer to enable service delivery

7. Charges and Payment: Fee structure, payment terms, invoicing process, and late payment consequences

8. Staff and Resources: Provider's personnel commitments, key personnel provisions, and resource management

9. Intellectual Property Rights: Ownership and licensing of pre-existing and newly created IP

10. Data Protection and Security: Data handling obligations, security requirements, and compliance measures

11. Confidentiality: Protection of confidential information and trade secrets

12. Liability and Indemnities: Limitation of liability, indemnification obligations, and insurance requirements

13. Term and Termination: Contract duration, renewal provisions, and termination rights

14. Exit and Migration: Procedures for service transition upon contract termination

15. Force Majeure: Rights and obligations during events beyond reasonable control

16. Governing Law and Dispute Resolution: Applicable law, jurisdiction, and dispute resolution procedures

17. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

Optional Sections

1. Regulatory Compliance: Include when services are subject to specific regulatory requirements or industry standards

2. Business Continuity and Disaster Recovery: Include for critical services requiring specific recovery time objectives

3. Environmental Compliance: Include when services have significant environmental impact or sustainability requirements

4. Anti-Bribery and Corruption: Include for high-value contracts or when dealing with government entities

5. Change Control: Include when services are likely to require frequent modifications or updates

6. Parent Company Guarantee: Include when additional financial security is required

7. Service Credits: Include when financial penalties for service level failures are required

8. Benchmarking: Include when periodic service and price comparison with market is desired

9. Step-In Rights: Include for critical services where customer may need to take over operations

10. Subcontracting: Include when provider is likely to use subcontractors for service delivery

Suggested Schedules

1. Schedule 1 - Service Description: Detailed description of all services to be provided

2. Schedule 2 - Service Levels and KPIs: Detailed service level agreements, measurement methods, and reporting requirements

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

4. Schedule 4 - Customer Dependencies: Detailed list of customer obligations and dependencies

5. Schedule 5 - Implementation Plan: Transition and implementation timeline and milestones

6. Schedule 6 - Security Requirements: Detailed security policies and procedures

7. Schedule 7 - Governance and Reporting: Service management procedures, meeting schedules, and reporting requirements

8. Schedule 8 - Staff and Key Personnel: Details of key staff, roles, and responsibilities

9. Schedule 9 - Exit Plan: Detailed procedures for contract termination and service transition

10. Schedule 10 - Technical Standards: Technical specifications and standards to be followed

11. Appendix A - Form of Change Order: Template for documenting and approving changes to services

12. Appendix B - Approved Subcontractors: List of approved subcontractors and their scope of work

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

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Telecommunications

Business Process Outsourcing

Healthcare

Financial Services

Manufacturing

Energy

Retail

Education

Professional Services

Logistics and Supply Chain

Real Estate

Relevant Teams

Legal

Procurement

Information Technology

Operations

Finance

Risk and Compliance

Vendor Management

Project Management Office

Service Delivery

Technical Operations

Security

Business Development

Relevant Roles

Chief Executive Officer

Chief Information Officer

Chief Technology Officer

Chief Financial Officer

Chief Operating Officer

Procurement Manager

Vendor Management Director

Legal Counsel

Contract Manager

Operations Manager

Service Delivery Manager

IT Director

Risk Manager

Compliance Officer

Project Manager

Technical Operations Lead

Finance Director

Business Unit Head

Industries
Contract Act 1872: The fundamental law governing contract formation, validity, and enforcement in Pakistan. It covers essential elements of contracts including offer, acceptance, consideration, and capacity to contract.
Electronic Transactions Ordinance 2002: Governs electronic transactions and digital signatures, crucial for managed services agreements that involve digital services and online transactions.
Prevention of Electronic Crimes Act 2016: Relevant for data security provisions and cybercrime prevention measures in managed services contracts, especially those involving IT services.
Companies Act 2017: Regulates corporate entities and their business operations, including their ability to enter into contracts and provide services.
Sales Tax Act 1990: Governs the taxation aspects of service provision, including requirements for charging and collecting sales tax on services.
Employment and Service Rules: Various labor laws and regulations that may apply if the managed services agreement involves staff transfers or employment-related provisions.
Competition Act 2010: Ensures fair competition and prevents anti-competitive practices in service agreements.
Provincial Sales Tax on Services Acts: Province-specific legislation governing sales tax on services, as services are taxed at the provincial level in Pakistan.
Consumer Protection Laws: Various federal and provincial consumer protection laws that may apply when services are provided to end consumers.
Personal Data Protection Bill (Draft): Although not yet enacted, this upcoming legislation should be considered for future compliance regarding personal data handling in managed services.
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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