What Is Service Level Agreement?

Service Level Agreement

An SLA (Service Level Agreement) is a formal document that defines a working relationship between parties for a service contract. It details the services provided, the standards expected, and the metrics for measuring performance. Commonly used in IT, SLAs are integral to ensuring a consistent level of service and outlining remedies or compensation if these standards are not met.

Types of SLAs

  1. Customer SLA: An agreement between an organization and an external vendor.
  2. Internal SLA: An agreement between different teams within an organization.
  3. Multi-level SLA: Involves multiple parties, such as multiple teams within an organization or a combination of vendors and internal teams.

Importance of SLAs

SLAs are crucial across various industries as they establish trust, align expectations, and create a foundation for transparent and effective collaboration. They also offer opportunities for vendors to demonstrate their commitment to service quality and reliability.

Key Components of an SLA

  • Overview of the agreement
  • List of stakeholders and their objectives
  • Description of services and service levels
  • Exclusions from the agreement
  • Conditions for cancellation
  • Action plans for unmet goals
  • Service performance metrics

How to Write an SLA

  1. Define the service: Clearly outline the service scope, stakeholder roles, customer and vendor obligations, and conditions for agreement cancellation.
  2. Verify service levels: Establish and agree upon specific service level metrics with all stakeholders.
  3. Determine performance metrics: Define clear metrics to measure the service quality, including output quality, defect rates, cost of meeting goals, and security measures.

Drop a line

We’d love to know more about your business and how we can help. Let’s connect!

  • United States, +1 (415) 799-11-13
  • Belgium, +32 (466) 90-10-63
  • Sweden, +46 (812) 11-14-80
  • Ukraine, +38 (066) 710-79-76