Service Level Agreement SLA Overall Facts
In the event that you have never heard about Service Level Agreement SLA, it doesn’t hurt to learn what this document is all about. It is an important element in technology and outsourcing vendor contract. The SLA can provide the quality and service type listing expectations as well as remedies when all the requirements aren’t fulfilled.
Service Level Agreement SLA specifies the level of quality service that customers expect from a supplier. It defines the metrics on how the service is measured and also the penalties that are based on the service levels. The SLA is generally happening between external suppliers and companies although it can also between 2 departments in a company.
An example of a telecommunication company SLA is to promise the network performance and availability up to 99%. They allow the customers to reduce the payment (up to a certain percentage) if such a promise isn’t achieved. The SLA can be about anything – depending on the agreement terms between the involved companies or parties.
Do you need the SLA? You need to ask yourself that question. You see, SLA is a part of the IT vendor contract. It collects all the information about the contracted service along with the agreed-upon expected reliability. The document would clearly include the responsibilities, expectations, and stat metrics. When there are problems with the both of the parties can’t plead for ignorance. The SLA also makes sure that both parties have the same understanding or comprehension about the requirements. It will also protect both parties in a legal matter or dispute.
The most ideal arrangement is to have the SLA aligned to the business or technology objectives. Any misalignment action can lead to negative effect related to customer experience, the quality of the delivered service, and the deal pricing.
Further Facts about the SLA
So, who is responsible for providing the SLA? Most providers have their own standard SLA which sets up a good ground for negotiation. The standard template can be modified or reviewed by the legal counsel and customers. The SLA should contain both the provided service description and also the expected level. It should also describes the metrics used for the measurement, the responsibilities and duties of the involved parties, the penalties for the breach, and also the protocol for removing or adding metrics.
If you are still confused about the concept or format of SLA, no need to worry. We have our own collections of Service Level Agreement SLA templates that you can use for your needs.