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IT Outsourcing Service Level Agreement

IT Outsourcing Service Level Agreement Template for India

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Key Requirements PROMPT example:

IT Outsourcing Service Level Agreement

"I need an IT Outsourcing Service Level Agreement for my fintech company based in Mumbai, engaging a software development firm to manage our core banking platform, with strict data security requirements and 99.99% uptime commitment, planned to commence from March 2025."

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Document background
The IT Outsourcing Service Level Agreement is a critical document used when organizations engage external IT service providers for their technology operations in India. This agreement is essential for establishing clear, measurable service standards and performance expectations between the parties. It combines technical specifications with legal requirements under Indian law, including compliance with the Information Technology Act, 2000, data protection rules, and relevant cyber security regulations. The document typically includes detailed service descriptions, performance metrics, reporting requirements, penalty mechanisms, and governance frameworks. It's particularly important in the Indian context where IT outsourcing is a major industry and requires careful consideration of local regulatory requirements, data protection standards, and business practices.
Suggested Sections

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

2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the outsourcing arrangement

3. Definitions: Detailed definitions of technical terms, service-related terminology, and other key concepts used throughout the agreement

4. Scope of Services: Detailed description of IT services to be provided, including core deliverables and service boundaries

5. Service Levels: Specific, measurable performance standards and metrics that the service provider must meet

6. Performance Monitoring: Methods and procedures for measuring and reporting service level performance

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

8. Provider Obligations: Key responsibilities and commitments of the service provider

9. Customer Obligations: Customer's responsibilities and requirements for enabling service delivery

10. Data Protection and Security: Requirements for data handling, security measures, and compliance with privacy laws

11. Intellectual Property Rights: Ownership and usage rights of pre-existing and newly created IP

12. Fees and Payment Terms: Pricing structure, payment schedule, and related financial terms

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

14. Dispute Resolution: Procedures for handling disputes and escalation processes

15. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction details

Optional Sections

1. Change Management: Procedures for requesting and implementing changes to services or service levels, recommended for complex service arrangements

2. Business Continuity and Disaster Recovery: Detailed procedures for ensuring service continuity, recommended for critical services

3. Transition and Exit Management: Procedures for service transition at start and end of contract, important for complex or critical services

4. Subcontracting: Terms governing the use of subcontractors, needed if subcontracting is permitted

5. Force Majeure: Provisions for handling events beyond reasonable control, recommended for long-term agreements

6. Insurance Requirements: Specific insurance coverage requirements, important for high-value or high-risk services

7. Environmental and Social Responsibility: Green IT and social responsibility requirements, relevant for organizations with ESG commitments

8. Regulatory Compliance: Specific regulatory requirements, needed for regulated industries

Suggested Schedules

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 breakdowns, payment milestones, and calculation methods

4. Schedule 4 - Escalation Matrix: Contact details and escalation procedures for various types of issues

5. Schedule 5 - Technical Infrastructure Requirements: Specifications of required hardware, software, and network infrastructure

6. Schedule 6 - Security Requirements: Detailed security protocols, standards, and compliance requirements

7. Schedule 7 - Reports and Documentation: Templates and specifications for required reports and documentation

8. Appendix A - Key Personnel: List of key personnel from both parties with roles and responsibilities

9. Appendix B - Approved Subcontractors: List of pre-approved subcontractors if applicable

10. Appendix C - Service Location(s): Details of service delivery locations and facilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 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
























































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Relevant Industries

Information Technology

Banking and Financial Services

Healthcare

E-commerce

Manufacturing

Telecommunications

Insurance

Retail

Education

Government and Public Sector

Pharmaceuticals

Automotive

Media and Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Vendor Management

Compliance

Information Security

Operations

Risk Management

Service Delivery

Contract Management

Technical Operations

Project Management

Relevant Roles

Chief Information Officer

IT Director

Procurement Manager

Contract Manager

Service Delivery Manager

Legal Counsel

Compliance Officer

Technology Operations Manager

Vendor Management Lead

Chief Technology Officer

Information Security Officer

Project Manager

Operations Director

Risk Manager

Business Relationship 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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