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Q.

What is a service level agreement?

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0 2022-01-13T17:31:27+00:00

A business may need to affiliate with service providers and third-party vendors for some services like network services, HR management, or technology. In that case, it is essential to lay down an agreement that regulates the quality of service that the service provider offers. Such agreement is referred to as a Service Level Agreement.

What is a Service Level Agreement:

It is an agreement between a business (customer) and a service provider to define the terms and quality of services to be offered by the service provider. This agreement regulates the remuneration the service provider will receive in exchange for the service they will offer, as well as the warranties and guarantees associated with the services.

Service Level Agreement is also known as SLA. So, now you know what does SLA stand for.

SLA Service Level Agreement Requirements and Checklists
  • Statement of objectives.

  • Customer responsibilities.

  • Service provider responsibilities.

  • Scope of services to be covered.

  • Performance metrics like analysis time, response time, etc.

  • Penalties for contract breach or exclusions

Advantages of SLA Helps Reduce Complexities

The general behavior of clients and customers is they often won’t want to understand or learn the functions of the service provider. They just want to know how they’ll be beneficial for them. An SLA defines and explains the issues that may appear during the agreement, what the quick feedback should be and how the issue can be neutralized in case the feedback is inadequate.

Helps Keep Disappointments at Bay

A good service level agreement defines the capabilities of the utility provider, which helps prevent unrealistic customer expectations.

Now you know what is SLA.

Read more:

What is service level agreement example?

What are the 3 types of SLA?

What is service based SLA?

I hope you like my answer on what is a service level agreement.