������Ƶ

An Outsourcing Agreement sets out the terms when one company hires another to handle specific business functions. Under Austrian law, these contracts must clearly define service levels, data protection measures, and liability arrangements - especially when dealing with sensitive business operations or personal information under GDPR requirements.

The agreement covers key aspects like performance metrics, payment terms, intellectual property rights, and termination conditions. Austrian businesses commonly use these agreements for IT services, customer support, or manufacturing processes, with special attention to worker protection laws and mandatory reporting requirements to regulatory authorities when outsourcing core business functions.

Consider an Outsourcing Agreement when your company needs to delegate specific business functions to external service providers in Austria. This is particularly important for IT services, customer support operations, or manufacturing processes where you need clear accountability and performance standards.

The agreement becomes essential when dealing with sensitive data processing, critical business operations, or services that affect your customers directly. Austrian law requires detailed documentation of outsourced activities, especially for regulated industries like banking or healthcare. Using this agreement helps meet compliance requirements, protects intellectual property, and establishes clear liability boundaries between your company and service providers.

• Basic Service Outsourcing: Covers standard business functions like IT support, cleaning, or maintenance with straightforward service levels and responsibilities
• Core Business Process Outsourcing: Used for critical operations requiring detailed performance metrics, strict compliance controls, and comprehensive data protection measures
• Manufacturing Outsourcing: Focuses on production processes, quality standards, and material handling specifications
• Knowledge Process Outsourcing: Tailored for specialized services like research, analytics, or legal work with strong intellectual property protections
• Hybrid Outsourcing: Combines on-site and remote service delivery with specific Austrian labor law considerations

• Client Companies: Austrian businesses seeking to outsource operations, responsible for defining requirements and monitoring service delivery
• Service Providers: External companies or contractors delivering the outsourced services, often specializing in specific business functions
• Legal Departments: In-house lawyers or external law firms drafting and reviewing Outsourcing Agreements to ensure compliance with Austrian regulations
• Data Protection Officers: Ensure GDPR compliance and proper handling of sensitive information in outsourcing arrangements
• Regulatory Bodies: Austrian authorities overseeing compliance, especially in regulated sectors like banking or healthcare

• Service Scope: Define exact services, deliverables, and performance metrics for the outsourced activities
• Compliance Requirements: Identify relevant Austrian regulations, especially data protection and industry-specific rules
• Risk Assessment: Document potential operational risks and necessary mitigation measures
• Cost Structure: Outline pricing, payment terms, and any performance-linked incentives or penalties
• Service Levels: Establish measurable quality standards, response times, and reporting requirements
• Exit Strategy: Plan transition arrangements, termination conditions, and data handover procedures

• Parties and Scope: Complete identification of contracting parties and detailed description of outsourced services
• Data Protection: GDPR compliance measures, data handling procedures, and confidentiality obligations
• Service Levels: Specific performance metrics, quality standards, and reporting requirements
• Liability Provisions: Clear allocation of risks, insurance requirements, and limitation of liability clauses
• Term and Termination: Contract duration, renewal options, and termination conditions
• Governing Law: Explicit reference to Austrian law and jurisdiction for dispute resolution
• Change Management: Procedures for modifying service scope or requirements

An Outsourcing Agreement differs significantly from a Consultancy Agreement in several key aspects, though both involve external service providers. While outsourcing typically transfers entire business functions to another company, consultancy focuses on specific expert advice or project-based work.

• Scope and Duration: Outsourcing Agreements usually cover ongoing operational functions with long-term commitments, while consultancy typically involves short-term, specific projects or advisory services
• Integration Level: Outsourcing partners often become deeply integrated into the client's operations, using client systems and processes. Consultants maintain more independence and provide external expertise
• Performance Metrics: Outsourcing contracts include detailed service levels and operational KPIs, whereas consultancy focuses on deliverables and expertise-based outcomes
• Liability Structure: Outsourcing involves broader operational risks and requires more comprehensive liability coverage under Austrian law, while consultancy liability typically centers on professional advice