What is an SLA?

SLA is defined as an agreement between a service provider and their clients/customers. This agreement provides all the information and details regarding the products and services that the service provider must provide to their customers or clients. SLA also provides the basis on which services can be measured and whether the expectation of the client has been met or not. It also provides remedies for the clients in case the given services in the SLA have not been fulfilled or any partial service is given. These agreements are mainly entered between a company and its external suppliers who supply them with goods or raw materials but depending upon the situation it can be also entered between two distinct departments of the same company as well.

Table of Content

  • Full Form of SLA
  • Components of Service Level Agreement (SLA)
  • Types of Service Level Agreement (SLA)
  • Importance of Service Level Agreement (SLA)
  • Who Needs Service Level Agreement (SLA)?
  • How to Set Metrics of Service Level Agreement (SLA)?
  • Examples of Service Level Agreement (SLA)

SLA | Full Form, Components and Types

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What is an SLA?

SLA is defined as an agreement between a service provider and their clients/customers. This agreement provides all the information and details regarding the products and services that the service provider must provide to their customers or clients. SLA also provides the basis on which services can be measured and whether the expectation of the client has been met or not. It also provides remedies for the clients in case the given services in the SLA have not been fulfilled or any partial service is given. These agreements are mainly entered between a company and its external suppliers who supply them with goods or raw materials but depending upon the situation it can be also entered between two distinct departments of the same company as well....

Full Form of SLA

SLA stands for “Service Level Agreement”. It is a document that creates legal liability upon the service provider to provide the services as mentioned in the SLA to their clients. This document provides the details of the services like performance, quality of services, and other related services that the service provider has promised to provide. It also has all the information regarding the warranty of the service, their customer care numbers, and how to measure their performance. SLA acts as a very essential document between the service provider and their clients as it provides the steps and penalties that the customer can use if the service provider does not provide them the services as mentioned in the SLA....

Components of SLA

Various components of a Service Level Agreement are necessary to be included in an SLA to make them a valid legal agreement. Some of the components that must be included in an SLA are discussed below....

Types of Service SLA

1. Customer SLA: These SLAs are created between a service provider and their customer. In this type, the customer can be an individual, a group, or a company depending upon the deal between them. SLA between a customer and their internet provider falls under this category. The Service providers make the customer SLA depending upon the needs of the facility of the customer. The services also differ with each customer so the service provider makes a unique SLA for each customer....

Importance of SLA

Service Level Agreement is a very detailed document and it is important for both the parties i.e. service provider and the client. There are various important points from the perspective of the service provider as well as the client, some of them are mentioned below....

Who Needs SLA?

Every business organisation that is providing any kind of services to another person works upon an SLA. The companies use their Service Level Agreement (SLA) to facilitate negotiation with clients or other organisations. This document plays a critical role in finalising any deal with other organisations. Various clients also need SLA to compare the services given by the service provider with other players in the market. SLA defines the services of both the service provider and the client, so it is also important that the client agrees to the terms mentioned in the SLA....

How to Set Metrics of SLA?

Metrics in an SLA depend upon the services given by the service provider and it will differ in each case. Metrics usually refer to the criteria for the services given by the service provider that can be measured. It is essential that the metrics of the SLA are easy to follow and the data can be also collected without any effort. The metrics should be made in a way that the customers can easily understand the services that they are going to get in the SLA. Some of the important metrics that need to be included in an agreement are as follows....

Examples of Service Level Agreement (SLA)

The examples of SLA differ with each service as different services requires different level of SLA. Some of the examples are provided below....