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A Service Level Agreement (SLA) is an agreement between a service provider and its customers that documents what services the provider will provide and defines the service standards that the provider is required to meet. SLA stands for “Service Level Agreement.” It is a contract between the party offering the services and the users of those services. The contract lists the benefits and highlights the quality standards that the supplier should adhere to guarantee customer satisfaction. The agreement also recalls how to fix loopholes and problems (e.g., Use of service credits).
What a Service Level Agreement should include:
- Detailed overview of services
- Speed of service delivery
- Schedule performance monitoring
- Description of the reporting procedure
- List of penalties that will be applied in the event of a breach of the contract
An SLA is typically one of two prior agreements service providers have with their customers. Many service providers enter into a framework agreement to establish general terms and conditions of cooperation with clients.