A service-level agreement (SLA) outlines the level of service expected by a customer from a supplier, devising the metrics by which that service is measurable. It also includes the remedies or penalties, if any, should the agreed-on service levels not be achieved. Generally, SLAs are between companies and external suppliers, but they could also be between two departments within a company.
The SLA should incorporate a description of the services to be provided and their expected service levels. It is also important to include metrics by which these services are measurable, the duties and responsibilities of each party, the remedies or penalties for breach, and a protocol for adding and removing metrics.
The design of metrics should be such that bad behavior by either party is not encouraged. For example, if there is a breach of service level because the client did not provide information promptly, the supplier should not be penalized.
Importance of SLA
SLAs are an essential component of an IT vendor contract. An SLA pulls together information on all the contracted services and their agreed-upon expected reliability into a single document. They clearly state the metrics, responsibilities, and expectations. The reason for that is, in the event of issues with the service, neither party can plead ignorance. It assures both sides have an equal understanding of requirements.
Key elements of SLA
The SLA should comprise of elements in two areas: services and management.
Service elements cover service details, service conditions, availability, standards such as time window for each service level, obligations of each party, escalation procedures, and cost/service tradeoffs.
Management components incorporate descriptions of measurement standards and methods, reporting methods, contents, incidence, a dispute resolution mechanism, an indemnification clause that saves the customer from third-party litigation emanating from service level breaches, and a tool for updating the agreement as required.
Basic terms used in SLA
An SLA document typically consists of:
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.
