The Development Services Agreement is essential for businesses engaging external partners or service providers for software development, technical solutions, or related services in India. This agreement type is particularly crucial in today's digital economy where companies increasingly rely on specialized technology partners for development projects. The document encompasses all necessary legal and operational aspects required under Indian law, including service scope, intellectual property rights, data protection, and compliance requirements. It provides a structured framework for managing development projects while protecting both parties' interests through clear deliverables, milestones, acceptance criteria, and dispute resolution mechanisms. The agreement is designed to comply with Indian Contract Act, Information Technology Act, and other relevant legislation while addressing specific challenges in technology development projects.
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1. Parties: Identification and details of the service provider and client, including registered addresses and company registration numbers
2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of engaging in the development services
3. Definitions: Detailed definitions of technical terms, project-specific terminology, and other key terms used throughout the agreement
4. Scope of Services: Detailed description of development services to be provided, including deliverables and objectives
5. Term and Timelines: Duration of the agreement and key project milestones
6. Payment Terms: Fee structure, payment schedule, invoicing requirements, and payment methods
7. Service Provider Obligations: Key responsibilities and commitments of the development service provider
8. Client Obligations: Client's responsibilities including providing access, information, and approvals
9. Intellectual Property Rights: Ownership and licensing of pre-existing IP and newly developed IP
10. Confidentiality: Protection and handling of confidential information and trade secrets
11. Data Protection and Security: Compliance with data protection laws and security requirements
12. Warranties and Representations: Guarantees regarding service quality, compliance with laws, and authority to contract
13. Limitation of Liability: Caps on liability and exclusions of certain types of damages
14. Termination: Grounds for termination, notice periods, and consequences of termination
15. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
16. General Provisions: Standard boilerplate clauses including notices, assignment, and severability
1. Change Control: Procedures for managing changes to scope, specifications, or timelines - include when project scope is likely to evolve
2. Service Levels: Specific performance metrics and standards - include when quantifiable service levels are required
3. Source Code Escrow: Arrangements for source code protection - include when client requires access to source code in specific circumstances
4. Business Continuity: Disaster recovery and business continuity requirements - include for critical systems development
5. Insurance: Specific insurance requirements - include when project involves significant risks or regulatory requirements
6. Non-Competition: Restrictions on competitive activities - include when protecting market position is crucial
7. Knowledge Transfer: Processes for transferring knowledge to client team - include when client plans to maintain/support the deliverables internally
8. Compliance with Specific Regulations: Industry-specific regulatory requirements - include when operating in regulated sectors
1. Schedule 1 - Service Specifications: Detailed technical specifications, functional requirements, and acceptance criteria
2. Schedule 2 - Commercial Terms: Detailed pricing, payment structure, and commercial terms
3. Schedule 3 - Project Plan: Detailed project timeline, milestones, and delivery schedule
4. Schedule 4 - Service Levels and KPIs: Detailed service level agreements and key performance indicators
5. Schedule 5 - Personnel: Key personnel, roles, and responsibilities
6. Schedule 6 - Technical Environment: Development environment specifications and technical requirements
7. Appendix A - Change Request Template: Standard format for requesting and documenting changes
8. Appendix B - Testing and Acceptance Procedures: Detailed procedures for testing and accepting deliverables
9. Appendix C - Security Requirements: Detailed security protocols and compliance requirements
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