A service level agreement SLA Definition the level of service you expect from a provider, identifying
the measures by which the service is measured, as well as solutions or
penalties if the agreed service levels are not reached. It is an essential part
of any technology supplier contract.
SLAs are an essential part of any outsourcing contract
and technology provider. In addition to the list of expectations in terms of
type and quality of service, SLA provides
solutions when the requirements are not met.
Below you will find answers to common questions about Service Level Agreements and advice on
how your organization can develop valid service level agreements with its
suppliers and partners.
A service level contract (SLA Meaning) defines the level of service expected by a supplier's
customer, establishing the parameters by which this service is measured and the
solutions or sanctions, if any, if the agreed service levels are not achieved.
Typically, service level agreements are between companies and external
suppliers, but they can also be between two departments within a company.
The SLA of a telecommunications company, for example, can
promise 99.999% network availability (for people who do not have a mathematical
inclination, this represents approximately five minutes and fifteen minutes of
downtime per year, which you believe or no), it may still be too long for
some). Companies) and allows the customer to reduce their payment by a certain
percentage, if not met, usually on a variable scale, depending on the extent of
the violation.
Why do I need an SLA?
SLAs are an integral part of an IT provider contract. An SLA
gathers information on all the services contracted and their expected
reliability agreed in a single document. They indicate the parameters,
responsibilities, and expectations so that in the event of a problem with the
service, none of the parties can claim ignorance. Ensures that both parties
have the same understanding of the requirements.
Any significant contract without an associated SLA (reviewed
by legal counsel) is subject to deliberate or inadvertent misinterpretation. SLA Management protects both parties to
the agreement.
Ideally, SLAs should be aligned with the technology or
business objectives of the engagement. Misalignment can harm the price of the
contract, the quality of the service provided, and the customer experience.
Who provides the SLA?
What is SLA Most
service providers have a standard, sometimes several SLAs that reflect
different levels of service at different prices, which can be a good starting
point for negotiations. However, they should be reviewed and modified by the
client and legal advisors, as they generally focus on the provider.
When submitting a request for quotation, the client must
include the expected service levels as part of the application; This will
affect the offers and prices of the suppliers and may even influence the
supplier's decision to respond. For example, if you need 99.999% availability
for a system and the provider cannot meet that requirement with the detailed
design, you can offer a different and more robust solution.
What are the critical
components of an SLA?
The SLA should include components in two areas: services and
management.
The elements of the service include specific details on the
services provided (and what is excluded in case of doubt), the conditions of
availability of the service, standards such as the time window for each level
of service (the maximum public timetable and schedule O the maximum audience
may have different levels of service, for example), responsibilities of each
party, escalation procedures and compensation for costs/services.
The management elements should include definitions of
measurement standards and methods, reporting processes, content and frequency,
a dispute resolution process, a compensation clause that protects the customer
from disputes with third parties in due to service level violations (this
should already be covered in the contract), and a mechanism to update the agreement
if necessary.
This last article is critical; Service requirements and
provider functionality are changed; therefore, there must be a way to ensure
that the SLA is updated.