Checklist - For Outsourcing Agreements

Copyright Envision SBS. 2004. All rights reserved.
Protected by the copyright laws of the United States & Canada and by International treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL BE SUED IN A COURT OF LAW.
CHECKLIST FOR OUTSOURCING AGREEMENTS
C o p y r i g h t
This checklist will help you ensure that you included all relevant clauses in an outsourcing agreement. Please ask your lawyer to review any agreement or contract before signing it.
Definition of the relationship, goals and objectives of both parties
Exclusive of other vendors Protect market position of customer
E n v i s i o n
Scope of services to be provided
S B S . 2 0 0 4 .
Define services and deliverables to be provided to customer by vendor Define services excluded Define service levels (i.e., performance standards) and remedies Provide for modification of service levels from initial levels upon execution after conversion to vendor operations Provide for milestones and project schedules (time phased, person loaded) Scope of vendor's authority
A l l r i g h t s r e s e r v e d .
Term of agreement

Personnel
Renewal periods Automatic renewal
Staffing requirements On customer site/off customer site Vendor right to change personnel Customer right to approve personnel Specific obligations of vendor regarding vendor personnel Confidentiality Non-compete Guaranteed service period for certain personnel Succession planning Mix of staff levels Vendor to offer employment to customer's work force Define employees to be transitioned Parameters for offers of employment Employee transition plan Use of customer facilities
P r o t e c t e d b y t h
Copyright Envision SBS. 2004. All rights reserved. Protected by the copyright laws of the United States & Canada and by International treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL BE SUED IN A COURT OF LAW.
Vendor to provide services from customer premises until specified date for conversion to other facilities List of equipment and services at facilities available for vendor use List of facilities square footage and rate to be paid, if any for use by vendor Vendor access to customer facilities 24 hour/normal vendor working hours Security issues Relocation of vendor
Customer owned equipment
Purchase of equipment owned by customer used to perform the services List of equipment/depreciated value Disposition of equipment subject to capital leases Obligation of customer to provide or acquire certain equipment
Customer leased equipment
Vendor permitted to use equipment leased by customer to perform the services Customer to terminate or assign leases for the leased equipment Customer to exercise option to purchase equipment under terminated lease and sell to vendor at cost
Data Processing services
For customer owned intellectual property Customer grants vendor license to use customer owned intellectual property for term of the agreement or until conversion of services using other intellectual property, if contemplated by parties Assignment to vendor of licenses for non-customer owned intellectual property to be used to provide services Termination of licenses for intellectual property not required by vendor to perform services Obligation for integration, new products Cost of correction of processing errors
Vendor intellectual property License to use/included as part of services License with respect to termination Bankruptcy issues Substantive license issues (scope of use, updates, warranties, etc.) Third party services
Customer to assign agreements for third party services to vendor Vendor responsible for cost of third party services Vendor to have the right to replace third party services with its own services or services of a third party of its choice
Management of projects and other services
Appointment of project managers by vendor and customer to be principal liaisons between parties Respective roles of parties (e.g., establishing priorities) Management planning Acceptance testing of vendor deliverables
Customer responsibilities
Establish priorities Delivery of data Training Forms/documents/supplies/consumables
Confidentiality obligations
Customer business information/data Vendor business information Intellectual property of either party or its licensor
Customer data
Security Right of customer to obtain data at any time Back-up procedures
Procedures to change scope of services
Customer right to change priority or scope of vendor's services/effect on rights and obligations of both parties Procedures for requesting changes to vendor's services Different performance standards for changes
Conversion services
Development of a plan to convert from customer's procedures to vendor's procedures to provide services Rights and obligations related to performance standards Software or processing modifications Scope Approval by customer Vendor obligations for updates, legal and regulatory changes
Training
Training for customer personnel Full training/"train the trainer" Daily/hourly
Fee structure
Fixed time/time based fee/volume based fee Basis of calculation Credits/reimbursements to customer Expenses Cost of living adjustment Fee schedule based on milestones Late fees/payment and billing/disputed amounts
Liability issues
Limitation of liability Warranties regarding services/products/personnel Disclaimer of warranties Indemnities
Termination
Specific rights Right to extend for limited time upon termination Termination assistance Transitional rights and obligations Offers to personnel Acquisition of equipment/software
Sharing of computer resources
Use of resources other than customer purposes Use by customer (if less than a full outsourcing)
Dispute resolution Assignment Insurance requirements Independent contractor status Restriction on hiring of other party's personnel Taxes Disaster Recovery/Force Majeure Audit issues Most Favored Customer

Checklist - For Outsourcing Agreements

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Copyright Envision SBS. 2004. All rights reserved.

CHECKLIST FOR OUTSOURCING AGREEMENTS

Definition of the relationship, goals and objectives of both parties

Exclusive of other vendors Protect market position of customer

Scope of services to be provided

Renewal periods Automatic renewal

Customer owned equipment

Customer leased equipment

Data Processing services

Management of projects and other services

Establish priorities Delivery of data Training Forms/documents/supplies/consumables

Security Right of customer to obtain data at any time Back-up procedures

Procedures to change scope of services

Training for customer personnel Full training/"train the trainer" Daily/hourly

Limitation of liability Warranties regarding services/products/personnel Disclaimer of warranties Indemnities

Sharing of computer resources

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