Service Bureau Agreement for India

Service Bureau Agreement Template for India

A comprehensive agreement governed by Indian law that establishes the terms and conditions under which a service bureau provides specialized business processing, data management, or technical services to a client organization. The agreement covers service scope, performance standards, data protection requirements, liability allocation, and operational procedures while ensuring compliance with Indian regulations including the Information Technology Act, 2000 and relevant data protection rules. It includes detailed provisions for service delivery, quality metrics, pricing, and risk management specific to the Indian business environment.

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What is a Service Bureau Agreement?

The Service Bureau Agreement is essential for organizations in India that provide specialized business processing, data management, or technical services to clients. This document type is commonly used when a service provider needs to establish a formal framework for delivering professional services that may include data processing, technical support, business process outsourcing, or specialized operational services. The agreement must comply with Indian legal requirements, including the Indian Contract Act, 1872, Information Technology Act, 2000, and data protection regulations. It typically includes comprehensive provisions for service delivery, performance standards, data security, intellectual property protection, and risk allocation. The agreement is particularly relevant in today's digital business environment where organizations increasingly rely on specialized service providers for critical business functions.

What sections should be included in a Service Bureau Agreement?

1. Parties: Identification of the service bureau provider and the client, including registered addresses and company details

2. Background: Context of the agreement, nature of services, and general intent of the parties

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided by the service bureau

5. Service Standards: Performance standards, service levels, and quality requirements

6. Term and Termination: Duration of the agreement and circumstances for termination

7. Fees and Payment: Pricing structure, payment terms, and billing procedures

8. Data Protection and Security: Obligations regarding data handling, security measures, and confidentiality

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

10. Representations and Warranties: Standard and service-specific warranties from both parties

11. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

12. Force Majeure: Provisions for handling events beyond reasonable control

13. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

14. General Provisions: Standard boilerplate clauses including notices, assignment, and amendments

What sections are optional to include in a Service Bureau Agreement?

1. Transition Services: Required when there needs to be a handover from existing service providers or systems

2. Business Continuity: Important for critical services requiring disaster recovery and business continuity planning

3. Audit Rights: Necessary when client requires right to audit service bureau's operations

4. Personnel Requirements: Include when specific staffing or qualification requirements are needed

5. Insurance: Detailed insurance requirements beyond standard liability provisions

6. Non-Competition: Required when parties want to restrict service bureau from working with competitors

7. Change Control: Important for long-term agreements where service requirements may evolve

What schedules should be included in a Service Bureau Agreement?

1. Schedule 1 - Service Description: Detailed technical and operational specifications of services

2. Schedule 2 - Service Levels: Specific performance metrics, measurement methods, and remedies

3. Schedule 3 - Fee Schedule: Detailed pricing, rate cards, and payment milestones

4. Schedule 4 - Data Processing Requirements: Specific data handling procedures and security protocols

5. Schedule 5 - Implementation Plan: Timeline and milestones for service implementation

6. Schedule 6 - Key Personnel: Details of key staff members and their roles

7. Schedule 7 - Exit Management: Procedures for service termination and transition

8. Appendix A - Technical Requirements: Technical specifications and requirements for service delivery

9. Appendix B - Security Standards: Detailed security protocols and compliance requirements

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

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Financial Services

Business Process Outsourcing

Data Processing

Healthcare

Manufacturing

Banking

Insurance

Telecommunications

Professional Services

Relevant Teams

Legal

Information Technology

Operations

Procurement

Compliance

Risk Management

Data Protection

Business Development

Service Delivery

Vendor Management

Relevant Roles

Chief Information Officer

Head of Operations

Legal Counsel

Procurement Manager

IT Director

Data Protection Officer

Operations Manager

Compliance Officer

Contract Manager

Business Development Manager

Service Delivery Manager

Chief Technology Officer

Risk Manager

Vendor Management Lead

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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