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United Kingdom
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UK outsourcing agreements: key terms and drafting issues (transition, service levels, charges, IP, TUPE, UK GDPR, audit, benchmarking, governance, liability, step in, termination, exit)

Practice notes
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This Practice Note

This Practice Note explores the principal provisions found in a standard outsourcing contract, including transition and transformation, service scope, service level measures, pricing structures, intellectual property, TUPE in outsourcing, benchmarking, data protection, customer obligations, governance, step-in, limits on liability, termination and exit. It also considers the impact of the UK GDPR on outsourcing arrangements...

Outsourcing involves engaging a third party supplier to run certain business processes, functions or responsibilities that were previously performed by the customer in a first generation outsourcing, or by another third party supplier in a second or subsequent generation outsourcing. This Practice Note outlines the key terms relevant to most outsourcing arrangements (including information technology (IT) and business process (BPO) outsourcing)...

  • Transition and transformation
  • Service description
  • Service levels
  • Charges
  • Intellectual property
  • Employment and TUPE
  • Data protection and the UK GDPR
  • Customer responsibilities and dependencies
  • Record retention and audit
  • Continuous improvement, benchmarking and most-favoured customer
  • Governance
  • Limitation of liability and indemnities
  • Step in
  • Termination and exit

Refer also to Precedents: Outsourcing agreement—short form and Outsourcing agreement—long form...

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Web page updated on 22/05/2026

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