Outsourcing Agreement

Outsourcing Agreement Template for Denmark

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Document background

This Outsourcing Agreement template is designed for use under Danish jurisdiction when a company (the customer) wishes to engage an external service provider to perform specific business functions or services. The agreement is particularly relevant in today's business environment where organizations increasingly rely on specialized external providers for various operations. It incorporates key requirements under Danish law, including compliance with the Danish Contracts Act, Data Protection Act, and relevant EU regulations. The document is structured to address critical aspects such as service delivery, performance metrics, data protection, risk management, and exit arrangements, while maintaining flexibility to accommodate specific industry requirements and regulatory obligations. This template is especially valuable for businesses operating in Denmark or subject to Danish law, providing a framework that balances operational efficiency with legal compliance.

Suggested Sections

1. Parties: Identification of the service provider and customer, including full legal names and registration details

2. Background: Context of the agreement, including brief description of the customer's business and outsourcing objectives

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 performance standards

5. Term and Commencement: Duration of the agreement and conditions for commencement

6. Service Provider's Obligations: Key responsibilities and commitments of the service provider

7. Customer's Obligations: Key responsibilities and commitments of the customer

8. Charges and Payment: Pricing, payment terms, and invoicing arrangements

9. Service Levels and Performance: Detailed service level requirements and performance monitoring

10. Governance and Reporting: Management structure, reporting requirements, and meeting schedules

11. Data Protection and Security: GDPR compliance, data processing terms, and security requirements

12. Intellectual Property Rights: Ownership and licensing of IP used and created during the services

13. Confidentiality: Protection of confidential information and trade secrets

14. Liability and Indemnities: Allocation of risks, limitation of liability, and indemnification provisions

15. Force Majeure: Provisions for handling events beyond parties' reasonable control

16. Termination: Termination rights, procedures, and consequences

17. Exit and Migration: Requirements for service transition upon termination

18. General Provisions: Standard legal provisions including governing law, notices, and amendments

Optional Sections

1. Employee Transfer: Required when the outsourcing involves transfer of employees under Danish Transfer of Undertakings legislation

2. Regulatory Compliance: Required for regulated industries, especially financial services

3. Business Continuity and Disaster Recovery: Required for critical services or when handling sensitive data

4. Insurance: Detailed insurance requirements, recommended for high-value or high-risk services

5. Parent Company Guarantee: Required when seeking additional financial security from service provider's parent company

6. Anti-Corruption and Ethics: Required when dealing with public sector or international services

7. Environmental Compliance: Required when services have significant environmental impact

8. Subcontracting: Required when service provider may need to engage subcontractors

Suggested Schedules

1. Service Description: Detailed specification of services to be provided

2. Service Levels: Detailed service level agreements including KPIs and measurement methods

3. Charges: Detailed pricing structure, including rate cards and payment mechanisms

4. Customer Dependencies: Detailed list of customer-provided items, access, and assistance

5. Data Processing Agreement: GDPR-compliant data processing terms and details

6. Security Requirements: Detailed security protocols and requirements

7. Governance Procedures: Detailed procedures for contract governance and escalation

8. Employee Information: Details of any transferring employees (if applicable)

9. Exit Plan: Detailed procedures for service transition upon termination

10. Business Continuity Plan: Detailed business continuity and disaster recovery procedures

11. Key Personnel: List of key personnel from both parties and their roles

12. Approved Subcontractors: List of pre-approved subcontractors and their roles

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