The Outsourcing Agreement Between Two Companies is a critical document used when one company (the service provider) agrees to perform certain business functions or services for another company (the customer) in the UAE. This agreement is essential in today's business environment where companies increasingly focus on core competencies while outsourcing other functions to specialized providers. The document must comply with UAE federal laws, including commercial, labor, and data protection regulations. It typically includes detailed provisions on service delivery, performance metrics, pricing, intellectual property rights, confidentiality, and dispute resolution mechanisms tailored to the UAE legal framework. The agreement is particularly important for protecting both parties' interests while ensuring compliance with local regulatory requirements and business practices.
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1. Parties: Identification of the contracting parties, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, brief description of each party's business, and purpose of the outsourcing arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided, including service levels and deliverables
5. Term and Renewal: Duration of the agreement, commencement date, and renewal provisions
6. Service Provider's Obligations: Key responsibilities and obligations of the service provider
7. Customer's Obligations: Key responsibilities and obligations of the customer
8. Charges and Payment Terms: Pricing, payment schedule, invoicing procedures, and payment terms
9. Service Levels and Performance: Performance standards, KPIs, monitoring, and reporting requirements
10. Governance and Management: Management structure, reporting lines, escalation procedures, and review meetings
11. Intellectual Property Rights: Ownership and licensing of pre-existing and newly created IP
12. Confidentiality: Protection of confidential information and trade secrets
13. Data Protection and Security: Compliance with UAE data protection requirements and security standards
14. Liability and Indemnification: Limitation of liability, indemnification obligations, and insurance requirements
15. Force Majeure: Events constituting force majeure and consequences
16. Termination: Termination rights, grounds for termination, and consequences
17. Exit Management: Transition assistance, handover requirements, and post-termination obligations
18. Governing Law and Dispute Resolution: UAE law as governing law and dispute resolution mechanisms
1. Change Control: Procedures for managing changes to services or contract terms - include when significant changes are anticipated during the contract term
2. Business Continuity and Disaster Recovery: Requirements for maintaining service continuity - include for critical services or regulated industries
3. Compliance with Specific Regulations: Industry-specific regulatory requirements - include when operating in regulated sectors like financial services or healthcare
4. Anti-Bribery and Corruption: Specific provisions for preventing corruption - include when dealing with government entities or high-risk jurisdictions
5. Environmental and Social Responsibility: ESG requirements - include when relevant to corporate policies or industry standards
6. Subcontracting: Rules and permissions for subcontracting - include when subcontracting is likely
7. Insurance: Detailed insurance requirements - include as separate section when complex insurance arrangements are needed
8. Personnel and Key Personnel: Requirements for staff and key personnel - include when specific expertise or security clearance is required
1. Schedule 1 - Services Description: Detailed technical and operational description of services to be provided
2. Schedule 2 - Service Levels: Detailed service level requirements, measurement methods, and remedies
3. Schedule 3 - Charges: Detailed pricing structure, rate cards, and payment mechanisms
4. Schedule 4 - Governance Procedures: Detailed procedures for contract governance, including meeting schedules and reporting requirements
5. Schedule 5 - Security Requirements: Detailed security policies, procedures, and compliance requirements
6. Schedule 6 - Exit Plan: Detailed procedures for contract termination and service transition
7. Schedule 7 - Form of Change Order: Template for documenting and approving changes
8. Schedule 8 - Key Personnel: List of key personnel and their roles
9. Appendix A - Technical Requirements: Technical specifications and requirements
10. Appendix B - Required Reports: Ƶ and specifications for required reports
Authors
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Business Process Outsourcing
Manufacturing
Financial Services
Healthcare
Telecommunications
Professional Services
Logistics and Supply Chain
Facilities Management
Human Resources Services
Relevant Teams
Legal
Operations
Procurement
Finance
Risk and Compliance
Information Technology
Human Resources
Commercial
Business Development
Project Management
Vendor Management
Relevant Roles
Chief Executive Officer
Chief Operating Officer
Chief Financial Officer
General Counsel
Legal Director
Procurement Manager
Operations Director
Commercial Director
Risk Manager
Compliance Officer
Project Manager
Vendor Management Lead
Contract Manager
Business Development Manager
Service Delivery Manager
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