The Service Bureau Agreement is essential for organizations in Malaysia seeking to outsource specialized business processes, data management, or technical services to a dedicated service provider. This agreement type is commonly used when a company requires professional third-party services but wants to maintain control over service quality and data security. The document addresses key aspects required under Malaysian law, including data protection requirements under the PDPA 2010, service level commitments, operational standards, and compliance obligations. It's particularly relevant in today's digital economy where businesses increasingly rely on specialized service providers for efficiency and expertise. The Service Bureau Agreement includes comprehensive provisions for performance monitoring, data handling, confidentiality, and dispute resolution, all aligned with Malaysian legal requirements and business practices.
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1. Parties: Identification of the service bureau and the client, including registration numbers and addresses
2. Background: Context of the agreement and general purpose of the service bureau arrangement
3. Definitions: Key terms used throughout the agreement including Services, Service Levels, Confidential Information, etc.
4. Scope of Services: Detailed description of services to be provided by the service bureau
5. Service Levels: Performance standards and metrics for service delivery
6. Fees and Payment: Payment terms, fee structure, and invoicing procedures
7. Term and Termination: Duration of agreement and termination provisions
8. Obligations of Service Provider: Key responsibilities and commitments of the service bureau
9. Client Responsibilities: Obligations and requirements of the client
10. Data Protection and Privacy: Compliance with PDPA and data handling requirements
11. Confidentiality: Protection of confidential information and trade secrets
12. Intellectual Property: Ownership and usage rights of IP created or used in service delivery
13. Liability and Indemnification: Limitation of liability and indemnification provisions
14. Force Majeure: Provisions for unforeseen circumstances and events beyond control
15. Governing Law: Application of Malaysian law and jurisdiction
16. General Provisions: Standard boilerplate clauses including notices, assignment, and amendments
1. Disaster Recovery: Required when services involve critical systems or data processing
2. Security Requirements: Needed when handling sensitive data or providing IT services
3. Change Control: Include when services may require frequent modifications or updates
4. Audit Rights: Important when compliance or quality control monitoring is required
5. Personnel Requirements: Necessary when specific qualifications or security clearances are needed
6. Insurance: Include when services involve significant risks or regulatory requirements
7. Anti-Corruption: Required for high-value contracts or government-related services
8. Exit Management: Important for complex services requiring transition planning
1. Schedule 1 - Service Description: Detailed specifications of services to be provided
2. Schedule 2 - Service Levels and KPIs: Specific metrics and performance standards
3. Schedule 3 - Fee Schedule: Detailed pricing, payment terms, and rate cards
4. Schedule 4 - Contact Details: Key personnel and escalation contacts
5. Schedule 5 - Processing Requirements: Data processing specifications and requirements
6. Schedule 6 - Technical Requirements: Systems, software, and technical specifications
7. Appendix A - Service Location(s): Details of where services will be performed
8. Appendix B - Required Reports: Templates and specifications for required reporting
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Technology
Manufacturing
Healthcare
Professional Services
Insurance
Banking
Retail
Telecommunications
Business Process Outsourcing
Education
Government Services
Relevant Teams
Legal
Operations
Procurement
Information Technology
Compliance
Risk Management
Finance
Data Protection
Vendor Management
Service Delivery
Business Process Management
Relevant Roles
Chief Operating Officer
Head of Operations
Procurement Manager
Legal Counsel
Compliance Officer
IT Director
Business Process Manager
Operations Manager
Contract Manager
Risk Manager
Chief Technology Officer
Service Delivery Manager
Chief Financial Officer
Data Protection Officer
Vendor Management Lead
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