The contents of an outsourcing contract

The contents of an outsourcing contract

  • The scope, definition and description of services/products to be delivered.
  • A clear statement on the rights and obligations of both the parties, so that each party knows what it must do under the agreement and what benefits it will receive in return.
  • Governance structure, representation and reporting requirements.
  • General conditions about security, privacy and warranties.
  • Plan and schedule that applies to delivery and implementation of the products and services specified in the agreement.
  • A clear procedure for the parties to control changes applied to the project and agree on the impact that changes may occur on the timetable and the price.
  • The basis by which the customer measures and accepts the services/products delivered and how the payment(s) are done.
  • Define the procedures to resolve any disputes promptly and provide effective and commercially realistic remedies for both parties in the event of contractual default by the other. It also should include any limitation of liability, termination and re-negotiation conditions.
  • Definition of any ownership of rights, products, licenses and intellectual property.