This Outsourcing Agreement template is designed for use in the Malaysian 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 companies increasingly focus on core competencies while outsourcing non-core functions to specialized providers. It incorporates key requirements under Malaysian law, including compliance with the Personal Data Protection Act 2010, employment regulations, and industry-specific requirements such as Bank Negara Malaysia guidelines for financial sector outsourcing. The document provides comprehensive coverage of essential elements including service levels, performance metrics, data protection, intellectual property rights, and exit management, while maintaining flexibility to accommodate various industry-specific requirements and business needs.
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1. Parties: Identification of the service provider and customer, including registration numbers and registered addresses
2. Background: Context of the outsourcing arrangement and brief description of the parties' business relationship
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided and service provider's obligations
5. Term and Renewal: Duration of the agreement and renewal provisions
6. Service Levels: Performance standards, metrics, and measurement methodology
7. Charges and Payment: Pricing, payment terms, invoicing, and related financial provisions
8. Data Protection and Security: Compliance with PDPA and data security requirements
9. Confidentiality: Protection of confidential information and trade secrets
10. Intellectual Property Rights: Ownership and licensing of IP created or used during service provision
11. Warranties and Representations: Standard warranties and representations from both parties
12. Liability and Indemnities: Limitation of liability and indemnification provisions
13. Force Majeure: Provisions for unforeseen circumstances affecting performance
14. Termination: Termination rights, process, and consequences
15. Exit Management: Transition arrangements upon termination
1. Employee Matters: Required when the outsourcing involves transfer of employees or TUPE-like situations
2. Regulatory Compliance: Additional section when services are subject to specific regulatory requirements (e.g., financial services)
3. Insurance: Detailed insurance requirements when service provider must maintain specific coverage
4. Business Continuity: Required for critical services requiring disaster recovery and business continuity planning
5. Anti-Bribery and Corruption: Additional compliance provisions for high-risk services or government-related contracts
6. Change Control: Detailed change management procedures for complex service arrangements
7. Dispute Resolution: Alternative dispute resolution mechanisms, particularly for international arrangements
1. Schedule 1 - Services Description: Detailed technical specifications and scope of services
2. Schedule 2 - Service Levels: Detailed SLAs, KPIs, and measurement methodologies
3. Schedule 3 - Charges: Detailed pricing structure, rates, and payment calculations
4. Schedule 4 - Customer Dependencies: Customer obligations and requirements for service delivery
5. Schedule 5 - Implementation Plan: Transition and implementation timeline and milestones
6. Schedule 6 - Approved Subcontractors: List of approved subcontractors and their roles
7. Schedule 7 - Data Processing Agreement: Detailed data protection and processing requirements
8. Schedule 8 - Exit Plan: Detailed transition-out procedures and requirements
9. Schedule 9 - Business Continuity Plan: Disaster recovery and business continuity procedures
10. Schedule 10 - Form of Change Order: Template for documenting and approving changes to services
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Business Process Operations
Manufacturing
Financial Services
Healthcare
Telecommunications
Professional Services
Logistics and Supply Chain
Retail
Energy and Utilities
Education
Relevant Teams
Legal
Procurement
Operations
Information Technology
Finance
Risk and Compliance
Vendor Management
Project Management Office
Service Delivery
Business Operations
Internal Audit
Relevant Roles
Chief Executive Officer
Chief Operating Officer
Chief Financial Officer
Chief Technology Officer
Head of Procurement
Head of Legal
Operations Director
Procurement Manager
Contract Manager
Vendor Management Lead
Legal Counsel
Risk Manager
Compliance Officer
IT Director
Project Manager
Service Delivery Manager
Operations Manager
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