1. The contract structure

The agreement will normally contain the following information.

  1. The names and addresses of both parties, the dates on which the contract will start and finish and a precise description of those areas of the client’s organization to which the outsourcing agreement relates.

  2. Guidelines and, where applicable, rules for the management of the transferred service, along with a description of the responsibilities of each of the key managers. In addition, management disagreements between the parties should be anticipated and a framework should be set down for dealing with such situations.

  3. A detailed description, with full technical explanations, of all services affected by the agreement, both those being transferred and those retained.

  4. A detailed explanation of any specially negotiated exit clauses along with any mid-contract termination periods agreed in advance.

  5. Details of any arrangement for the client to benchmark the service and the date when it is to be carried out.

  6. The date by which renewal discussions must have commenced before the end of the contract period.

  7. Details of any agreement to share the risks and/or rewards.

  8. An anticipation of outside factors, such as changes in legislation, that might affect the contract and a framework for dealing with any problems that might arise as a result.

  9. An explanation of any indemnity enjoyed by both the provider and the client.


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