This Software Outsourcing Agreement is designed for use when an organization wishes to engage an external provider for software development services in Australia. It establishes a comprehensive framework for the development relationship, covering everything from initial scope definition to final delivery and ongoing maintenance. The agreement is structured to comply with Australian legal requirements, including privacy laws, intellectual property protection, and consumer protection provisions. It is particularly suitable for businesses seeking to outsource specific software development projects or establish ongoing development relationships while maintaining clear deliverables, timelines, and quality standards. The document includes provisions for protecting both parties' interests, managing project risks, and ensuring clear communication and governance throughout the development process.
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1. Parties: Identification of the service provider and customer, including registered addresses and company details
2. Background: Context of the agreement, including the customer's need for software development services and the provider's expertise
3. Definitions: Detailed definitions of technical terms, project-specific terminology, and key concepts used throughout the agreement
4. Scope of Services: Detailed description of the software development services to be provided, including development methodology and project phases
5. Project Governance: Management structure, reporting lines, key personnel, and decision-making processes
6. Provider Obligations: Key responsibilities and commitments of the service provider, including quality standards and resource commitments
7. Customer Obligations: Customer's responsibilities, including provision of access, information, and resources needed for the project
8. Acceptance Testing: Procedures for testing deliverables, acceptance criteria, and remediation of defects
9. Intellectual Property Rights: Ownership and licensing of pre-existing IP and newly developed software
10. Data Protection and Security: Requirements for handling customer data, security protocols, and compliance measures
11. Charges and Payment: Fee structure, payment terms, expenses, and invoicing procedures
12. Term and Termination: Duration of the agreement, renewal terms, and termination rights
13. Warranties and Indemnities: Service provider's warranties regarding service quality and indemnification obligations
14. Liability and Insurance: Limitation of liability provisions and required insurance coverage
15. Confidentiality: Protection of confidential information and trade secrets
16. General Provisions: Standard legal provisions including governing law, dispute resolution, and entire agreement
1. Change Control: Procedures for managing changes to project scope or requirements - include if project is likely to evolve
2. Business Continuity: Disaster recovery and business continuity requirements - include for mission-critical software
3. International Data Transfers: Provisions for cross-border data transfers - include for international outsourcing
4. Source Code Escrow: Arrangements for source code protection - include if source code access is critical
5. Transition Services: Procedures for transitioning services in or out - include if complex implementation or exit needed
6. Regulatory Compliance: Specific regulatory obligations - include for regulated industries
7. Open Source Software: Management of open source components - include if open source will be used
8. Audit Rights: Customer's rights to audit provider's operations - include for regulated industries or critical systems
1. Schedule 1 - Services Description: Detailed technical specifications and functional requirements of the software
2. Schedule 2 - Service Levels: Performance metrics, service level agreements, and related penalties/credits
3. Schedule 3 - Charges: Detailed pricing structure, rate cards, and payment milestones
4. Schedule 4 - Project Plan: Project timeline, milestones, and delivery schedule
5. Schedule 5 - Testing Procedures: Detailed acceptance testing procedures and criteria
6. Schedule 6 - Security Requirements: Specific security standards, protocols, and compliance requirements
7. Schedule 7 - Key Personnel: Details of key team members and their roles
8. Schedule 8 - Governance Procedures: Detailed procedures for project management and oversight
9. Appendix A - Technical Environment: Description of development and deployment environment specifications
10. Appendix B - Form of Change Order: Template for documenting and approving changes to project scope
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