Outsourcing Agreement
This Outsourcing Agreement provides terms for the provision of outsourced services, on an ongoing basis, like technical support or clerical support.
Last updated February 26, 2025
Suitable for Australia
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Frequently asked questions
What are the benefits of having an Outsourcing Agreement?
Having a well-drafted outsourcing agreement can help ensure that the outsourcing relationship is effective and sustainable over time.
- It ensures that both parties have a clear understanding of expectations by clearly defining the terms of the outsourced services, including the scope of work, deliverables, pricing and payment terms, intellectual property rights and obligations of parties.
- It can help reduce the risk of legal disputes arising from the outsourced services by setting out the terms of the outsourcing arrangement in a clear and unambiguous manner.
- By transferring risks to the service provider, it can help companies to mitigate risks associated with certain business functions, such as regulatory compliance, security or data privacy.
What does the Outsourcing Agreement cover?
The services, equipment and applications that are included;
- The time when the services will be provided;
- Fees, invoicing and payment;
- Reporting on the services;
- Intellectual property and confidentiality;
- Use of subcontractors;
- What is excluded from support; and
- The minimum standards the environment must meet to qualify for services.
Further information
View Sample Outsourcing Agreement
The Legal Risk Score of a Outsourcing Agreement Template is Medium
Our legal team have marked this document as medium risk considering:
- The document allows the Company to use subcontractors to perform some or all of the Outsourced Services, which may introduce variability in the quality and timeliness of the services provided if not properly managed.
- The outsourcing process may require managing requirements from different jurisdictions.
- The agreement does not specify detailed procedures for handling breaches or poor performance beyond re-performance of services, which may leave the Client with limited recourse in improving or correcting inadequate service delivery.
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