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.
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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
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)
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
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