Outsourcing agreement: shorter form

by Practical Law Commercial and Simon Jones, Squire Patton Boggs

A standard document providing a shorter form outsourcing agreement suitable for non-IT or other less complex service arrangements. Drafted from the customer's perspective but with guidance for both parties, this standard document establishes a framework for the entire outsourcing lifecycle, from implementation to termination. It addresses the core commercial aspects, including the definition of services, implementation planning, service levels and a detailed charging structure with provisions for service credits. It incorporates essential legal considerations such as the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) for managing employee transfers, and robust data protection clauses to ensure compliance with the UK General Data Protection Regulation. It also covers intellectual property rights, confidentiality and limitations on liability. Further provisions on governance, subcontracting, audit rights and change control help manage the ongoing relationship. The agreement concludes with clear termination rights and a comprehensive exit plan to facilitate a smooth transition of services. If the outsourced services relate to IT functions or complex business process functions, see Standard document, Outsourcing agreement: long form.