External Service Level Agreement for India

External Service Level Agreement Template for India

A comprehensive legal agreement governed by Indian law that establishes and defines the service relationship between a service provider and client organization. The document outlines specific, measurable service levels, performance metrics, and operational standards that the service provider must maintain, along with associated penalties or remedies for non-compliance. It includes detailed provisions for service delivery, monitoring, reporting, and escalation procedures, while ensuring compliance with Indian regulatory requirements, including the Indian Contract Act, 1872, and relevant sector-specific regulations. The agreement also addresses data protection, confidentiality, dispute resolution, and termination conditions.

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What is a External Service Level Agreement?

The External Service Level Agreement (SLA) is a crucial document used when organizations engage external service providers for ongoing service delivery under Indian jurisdiction. This agreement type is essential for establishing clear performance expectations, service standards, and accountability measures between the contracting parties. It provides a detailed framework for service delivery, including specific metrics, reporting requirements, and remedies for service failures, while ensuring compliance with Indian legal requirements such as the Indian Contract Act, 1872, and the Information Technology Act, 2000. The document is particularly important in today's business environment where organizations increasingly rely on external service providers for critical business functions, and require clear, measurable standards for service delivery and performance monitoring.

What sections should be included in a External Service Level Agreement?

1. Parties: Identification and details of the service provider and service recipient

2. Background: Context of the agreement and brief description of the services to be provided

3. Definitions: Detailed definitions of technical terms, metrics, and key concepts used in the agreement

4. Scope of Services: Detailed description of services to be provided, including basic service levels

5. Service Level Metrics: Specific, measurable performance indicators and targets

6. Monitoring and Reporting: Procedures for measuring, monitoring, and reporting service performance

7. Service Credits and Penalties: Compensation mechanism for service level failures

8. Payment Terms: Pricing, payment schedule, and related financial terms

9. Term and Termination: Duration of agreement, renewal terms, and termination conditions

10. Obligations of the Parties: Specific responsibilities of both service provider and recipient

11. Confidentiality: Protection and handling of confidential information

12. Data Protection: Compliance with data protection laws and data handling procedures

13. Force Majeure: Provisions for unforeseen circumstances affecting service delivery

14. Dispute Resolution: Process for resolving disagreements and jurisdictional matters

15. General Provisions: Standard legal clauses including notices, amendments, and governing law

What sections are optional to include in a External Service Level Agreement?

1. Disaster Recovery: Procedures for service continuity in case of disasters - include when services are critical or involve significant data handling

2. Intellectual Property Rights: Protection of IP and licensing terms - include when services involve software, content creation, or proprietary methodologies

3. Security Requirements: Specific security protocols and compliance requirements - include for services involving sensitive data or systems

4. Transition Services: Procedures for service handover at start and end - include for complex service relationships or when significant knowledge transfer is required

5. Subcontracting: Terms for engaging third-party service providers - include when subcontracting is likely or permitted

6. Insurance: Required insurance coverage - include for high-risk services or when mandated by regulation

7. Compliance with Specific Regulations: Industry-specific regulatory requirements - include based on service sector (e.g., healthcare, financial services)

What schedules should be included in a External Service Level Agreement?

1. Schedule 1: Service Descriptions: Detailed technical specifications of each service component

2. Schedule 2: Service Level Specifications: Detailed metrics, measurement methods, and targets for each service level

3. Schedule 3: Pricing and Payment Schedule: Detailed pricing structure, rates, and payment terms

4. Schedule 4: Escalation Matrix: Contact details and procedures for issue escalation

5. Schedule 5: Reports and Documentation: Templates and specifications for required reports

6. Schedule 6: Technical Infrastructure: Details of technical requirements and infrastructure specifications

7. Appendix A: Service Credit Calculations: Formulas and examples for calculating service credits

8. Appendix B: Change Control Procedure: Process for requesting and implementing changes to services

Authors

Alex Denne

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

Jurisdiction

India

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Business Process Outsourcing

Telecommunications

Healthcare Services

Financial Services

Manufacturing

Logistics and Supply Chain

Professional Services

Cloud Services

Facilities Management

Security Services

Consulting Services

Relevant Teams

Legal

Procurement

Operations

Vendor Management

Compliance

Risk Management

Information Technology

Quality Assurance

Project Management

Contract Administration

Relevant Roles

Chief Operating Officer

Procurement Manager

Legal Counsel

Contract Manager

Service Delivery Manager

Operations Director

Vendor Management Specialist

Quality Assurance Manager

Compliance Officer

Risk Manager

IT Director

Chief Technology Officer

Business Unit Head

Project Manager

Account 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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