June 1, 2023
1. Service Identification & Scope Definition
1.1 Core IT Services
- Inventory all IT services to be included in the TSA, detailing their current operational state and criticality to business functions.
- Establish the service quality metrics and performance expectations for each service, using clear, objective, and measurable key performance indicators (KPIs).
- Delineate clear boundaries of responsibilities between the provider and the receiver of the services.
1.2 Ancillary Services
- Identify the need for ancillary services, such as training, support, and consultancy, and specify them in the agreement.
- Clearly define the scope and extent of these additional services to avoid misunderstandings.
- Establish the expectations for these services, including delivery timelines, quality, and cost.
2. Contractual Terms & Conditions
2.1 Duration & Exit
- Establish the term of the TSA, ensuring sufficient time for the receiver to transition to independent operation.
- Define clear exit strategies and termination conditions for both parties.
- Include provisions for extension in the event of unforeseen delays.
2.2 Pricing & Payment Structure
- Detail the pricing model, making sure it is comprehensive and includes all cost components.
- Set out clear payment terms and conditions, including the timing, method, and currency of payment.
- Consider potential price adjustment mechanisms for changes in volume, market conditions, or service levels.
2.3 Confidentiality & Data Security
- Ensure the TSA contains strong confidentiality clauses to protect sensitive data.
- Define the data security requirements and the measures to be taken to ensure compliance with these requirements.
- Address the responsibilities and liabilities for any data breaches or violations of data protection laws.
3. Execution, Management & Review
3.1 Service Level Agreements (SLAs)
- Define clear SLAs for each IT service, with measurable performance metrics.
- Establish a mechanism for monitoring and reporting on service levels.
- Define penalties or compensations for non-compliance with SLAs.
3.2 Governance Structure
- Establish a governance structure with roles and responsibilities for managing the TSA.
- Include mechanisms for addressing and resolving service performance issues.
- Define a regular review process to assess the effectiveness of the TSA and to make necessary adjustments.
3.3 Dispute Resolution
- Define a clear process for dispute resolution, with escalation procedures and timeframes.
- Consider including mediation or arbitration clauses to avoid litigation.
- Ensure that the dispute resolution mechanism is fair, transparent, and efficient.