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Business Process Outsourcing Agreement

Business Process Outsourcing Agreement Template for Germany

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Key Requirements PROMPT example:

Business Process Outsourcing Agreement

"I need a Business Process Outsourcing Agreement for outsourcing our company's HR and payroll functions to a German service provider, with special attention to GDPR compliance and employee data protection, planned to commence in March 2025."

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Document background
The Business Process Outsourcing Agreement is essential for companies operating in Germany who wish to outsource specific business functions to external service providers. This agreement is particularly relevant in the context of German commercial law and must comply with various German and EU regulations, including GDPR, German Federal Data Protection Act (BDSG), and where applicable, sector-specific regulations. The document typically covers service scope, performance metrics, pricing, data protection, employee transfers under §613a BGB, and operational governance. It's designed to create a clear framework for long-term outsourcing relationships while ensuring compliance with German legal requirements and protecting both parties' interests.
Suggested Sections

1. Parties: Identification of contracting parties with full legal names and addresses

2. Background: Context of the agreement and business relationship

3. Definitions: Defined terms used throughout the agreement

4. Scope of Services: Detailed description of outsourced processes and services to be provided

5. Service Provider's Obligations: Key responsibilities and commitments of the service provider

6. Customer's Obligations: Key responsibilities and commitments of the customer

7. Service Levels: Performance standards, KPIs, and measurement criteria

8. Charges and Payment: Pricing, payment terms, invoicing, and related financial provisions

9. Data Protection and Security: GDPR compliance, data processing terms, and security requirements

10. Intellectual Property Rights: Ownership and usage rights of IP created or used during service provision

11. Confidentiality: Protection of confidential information and trade secrets

12. Term and Termination: Duration, renewal, and termination provisions

13. Liability and Indemnification: Limitation of liability, indemnification obligations, and insurance requirements

14. Force Majeure: Provisions for unforeseen circumstances and force majeure events

15. Governing Law and Jurisdiction: German law governance and dispute resolution procedures

16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Employee Transfer Provisions: Required when the BPO involves transfer of employees under §613a BGB

2. Transition Services: Include when specific transition or implementation phase is required

3. Business Continuity and Disaster Recovery: Required for critical business processes or regulated industries

4. Change Control: Include for complex services requiring formal change management procedures

5. Audit Rights: Required for regulated industries or when handling sensitive data

6. Anti-Corruption and Compliance: Include for international services or regulated industries

7. Subcontracting: Include when service provider may use subcontractors

8. Exit Management: Required for complex services requiring detailed termination assistance

Suggested Schedules

1. Service Description: Detailed technical and operational description of services

2. Service Levels and KPIs: Detailed service level specifications and measurement criteria

3. Pricing and Charging Model: Detailed pricing structure, rates, and calculation methods

4. Data Processing Agreement: GDPR-compliant data processing terms and security requirements

5. Governance Model: Service management, reporting, and escalation procedures

6. Technical Requirements: IT infrastructure, security, and technical specifications

7. Employee Information: Details of transferred employees and related arrangements

8. Transition Plan: Implementation and service transition timeline and milestones

9. Business Continuity Plan: Disaster recovery and business continuity procedures

10. Exit Plan: Termination assistance and service transfer procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions































































Clauses

















































Relevant Industries

Financial Services

Manufacturing

Technology

Healthcare

Retail

Telecommunications

Insurance

Automotive

Energy

Professional Services

Logistics

Banking

Relevant Teams

Legal

Procurement

Operations

Information Technology

Finance

Human Resources

Compliance

Risk Management

Data Protection

Project Management

Relevant Roles

Chief Operations Officer

Head of Procurement

Legal Counsel

Data Protection Officer

Operations Director

Procurement Manager

Contract Manager

IT Director

Chief Financial Officer

HR Director

Compliance Officer

Business Process Manager

Sourcing Manager

Risk Manager

Project Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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