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Performance SLA Template for India

This Service Level Agreement (SLA) template is designed for use in India, incorporating requirements under the Indian Contract Act, 1872, and the Information Technology Act, 2000. It establishes measurable performance standards, metrics, and consequences for service delivery, defining specific service levels, measurement methodologies, and remedies for non-performance. The document includes comprehensive provisions for service monitoring, reporting mechanisms, penalty calculations, and escalation procedures, while ensuring compliance with Indian legal requirements and industry standards.

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What is a Performance SLA?

This Performance SLA template is specifically designed for use in India, providing a framework for establishing and managing service level commitments between service providers and recipients. It should be used when parties need to define measurable performance standards, monitoring mechanisms, and consequences for service delivery. The document incorporates requirements under Indian law, including the Indian Contract Act and IT Act, making it suitable for both domestic and international service arrangements. The Performance SLA includes essential elements such as service definitions, performance metrics, measurement methodologies, reporting requirements, and remedy mechanisms, while ensuring alignment with Indian regulatory requirements and industry best practices. It's particularly valuable for technology services, outsourcing arrangements, and managed services relationships where quantifiable performance standards are crucial.

What sections should be included in a Performance SLA?

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

2. Background: Context of the agreement and relationship between the parties

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

4. Service Description: Comprehensive description of services covered under the agreement

5. Performance Metrics: Specific, measurable performance indicators and service levels to be maintained

6. Measurement and Monitoring: Methods and tools for measuring and monitoring service performance

7. Service Level Targets: Quantitative and qualitative targets for each service level metric

8. Reporting Requirements: Frequency, format, and content of performance reports

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

10. Problem Management: Procedures for identifying, reporting, and resolving service issues

11. Governance: Management structure, meeting schedules, and escalation procedures

12. Term and Termination: Duration of the agreement and conditions for termination

13. General Terms: Standard legal provisions including confidentiality, force majeure, and dispute resolution

What sections are optional to include in a Performance SLA?

1. Data Protection and Privacy: Required when service involves processing of personal or sensitive data

2. Business Continuity: Include when service requires disaster recovery and business continuity plans

3. Security Requirements: Necessary for services involving IT systems or sensitive information

4. Transition Services: Include when complex service transition or exit management is required

5. Regulatory Compliance: Required for regulated industries or services

6. Innovation and Continuous Improvement: Include when expecting ongoing service improvements

7. Third-Party Dependencies: Required when service delivery depends on third-party providers

What schedules should be included in a Performance SLA?

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

2. Schedule 2 - Performance Metrics Calculation: Detailed methodology for calculating each performance metric

3. Schedule 3 - Service Level Targets and Measurements: Specific targets and measurement methods for each service level

4. Schedule 4 - Service Credit Calculation: Formula and examples for calculating service credits

5. Schedule 5 - Pricing and Commercial Terms: Detailed pricing structure and payment terms

6. Schedule 6 - Operational Procedures: Day-to-day operational procedures and responsibilities

7. Schedule 7 - Contact Details and Escalation Matrix: Key contacts and escalation procedures

8. Appendix A - Report Ƶ: Standard templates for various required reports

9. Appendix B - Technical Infrastructure: Details of technical infrastructure supporting the services

Authors

Alex Denne

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

Jurisdiction

India

Publisher

Ƶ

Cost

Free to use

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