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Professional Services Engagement Letter Template for India

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Key Requirements PROMPT example:

Professional Services Engagement Letter

"I need a Professional Services Engagement Letter for my IT consulting firm based in Bangalore, providing cybersecurity services to a multinational client, with specific emphasis on data protection compliance and cross-border service delivery starting March 2025."

Document background
The Professional Services Engagement Letter is a critical document used when establishing a formal professional services relationship in India. It combines elements of a formal contract with the accessibility of a business letter, making it suitable for various professional services ranging from consulting to specialized technical services. The document is essential for compliance with Indian contract law and professional regulations, while providing clarity on scope, deliverables, and commercial terms. It should be used at the commencement of any professional service engagement to document the agreed terms, protect both parties' interests, and ensure alignment on expectations. The letter typically precedes the actual service delivery and forms the basis for the entire professional relationship, incorporating relevant legal, commercial, and operational aspects specific to the Indian business environment.
Suggested Sections

1. Parties: Identification of the service provider and client, including full legal names, addresses, and any registration numbers

2. Background: Brief context of the engagement and the client's requirements

3. Definitions: Key terms used throughout the engagement letter

4. Scope of Services: Detailed description of the professional services to be provided

5. Fees and Payment Terms: Professional fees, payment schedule, expenses, and taxation considerations

6. Timeline and Deliverables: Expected timeframes for service delivery and specific deliverables

7. Confidentiality: Obligations regarding confidential information and data protection

8. Professional Standards: Commitment to maintain professional standards and quality of service

9. Term and Termination: Duration of engagement and conditions for termination

10. Limitation of Liability: Extent and limitations of the service provider's liability

11. Governing Law: Specification of Indian law as governing law and jurisdiction

12. Acceptance: Signature blocks and acceptance confirmation

Optional Sections

1. Personnel: Details of key team members assigned to the engagement. Include when specific expertise or team continuity is crucial

2. Intellectual Property Rights: IP ownership and usage rights. Include when services involve creation of intellectual property

3. Force Majeure: Provisions for unforeseen circumstances. Include for longer-term engagements

4. Non-Competition: Restrictions on competitive activities. Include when sharing sensitive business information

5. Insurance: Professional indemnity and other insurance requirements. Include for high-risk services

6. Data Protection: Detailed data handling procedures. Include when processing personal or sensitive data

7. Subcontracting: Terms for engaging subcontractors. Include when subcontracting is anticipated

8. Conflict of Interest: Disclosure and management of potential conflicts. Include for regulated professions

Suggested Schedules

1. Schedule A - Detailed Scope of Work: Comprehensive breakdown of services, methodologies, and specific tasks

2. Schedule B - Fee Structure: Detailed fee calculations, rates, and payment milestones

3. Schedule C - Project Timeline: Detailed project phases, milestones, and delivery dates

4. Schedule D - Team Structure: Team organization, roles, and responsibilities

5. Appendix 1 - Standard Terms and Conditions: Detailed standard terms and conditions of engagement

6. Appendix 2 - Compliance Requirements: Specific regulatory or professional compliance requirements

7. Appendix 3 - Service Level Agreement: Performance metrics and service level commitments

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses



































Relevant Industries

Information Technology

Management Consulting

Financial Services

Legal Services

Accounting and Audit

Engineering Services

Healthcare Consulting

Business Advisory

Marketing and Communications

Human Resources

Environmental Consulting

Research and Analytics

Education and Training

Real Estate Advisory

Relevant Teams

Legal

Procurement

Finance

Operations

Compliance

Business Development

Contract Management

Risk Management

Project Management

Professional Services

Client Services

Administration

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Procurement Manager

Project Manager

Finance Director

Operations Manager

Compliance Officer

Business Development Manager

Contract Manager

Partner (Professional Services)

Director of Services

Chief Financial Officer

Risk Manager

Department Head

Professional Consultant

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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