Outsourcing Agreement
This Outsourcing Agreement provides terms for the provision of outsourced services, on an ongoing basis, like technical support or clerical support.
4.0 (1 reviews)
Last updated January 22, 2025
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This Outsourcing Agreement is drafted to favour the client's interests. Typically, a client would issue such an agreement to a services provider.
The Legal Risk Score of a Outsourcing Agreement Template
Our legal team have marked this document as medium risk considering:
- The document allows the Company to use subcontractors to perform some or all of the Outsourced Services, which may introduce variability in the quality and timeliness of the services provided if not properly managed.
- The outsourcing process may require managing requirements from different jurisdictions.
- The agreement does not specify detailed procedures for handling breaches or poor performance beyond re-performance of services, which may leave the Client with limited recourse in improving or correcting inadequate service delivery.
Outsourcing Agreement Checklist
Complete your free Outsourcing Agreement with our checklist
Review and Approve Specification
Ensure that the Specification detailing the Outsourced Services is thoroughly reviewed, agreed upon by both parties, and signed as indicated in the document to confirm acceptance.
Monitor Subcontractor Performance
Actively monitor the performance of any subcontractors used by the Company to ensure that the services meet the agreed standards and specifications.
Secure Intellectual Property Rights
Discuss and clarify any intellectual property rights and usage with the Company to ensure that the Client has the necessary licenses for the intended use of deliverables.
Maintain Documentation
Keep detailed records and copies of all executed agreements, amendments, and communications related to the outsourcing services for reference and compliance purposes.
What are the benefits of having an Outsourcing Agreement?
Having a well-drafted outsourcing agreement can help ensure that the outsourcing relationship is effective and sustainable over time.
- It ensures that both parties have a clear understanding of expectations by clearly defining the terms of the outsourced services, including the scope of work, deliverables, pricing and payment terms, intellectual property rights and obligations of parties.
- It can help reduce the risk of legal disputes arising from the outsourced services by setting out the terms of the outsourcing arrangement in a clear and unambiguous manner.
- By transferring risks to the service provider, it can help companies to mitigate risks associated with certain business functions, such as regulatory compliance, security or data privacy.
What does the Outsourcing Agreement cover?
The services, equipment and applications that are included;
- The time when the services will be provided;
- Fees, invoicing and payment;
- Reporting on the services;
- Intellectual property and confidentiality;
- Use of subcontractors;
- What is excluded from support; and
- The minimum standards the environment must meet to qualify for services.
Further information
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