What Is Service Level Agreement (SLA)?

1. What Is Service Level Agreement (SLA)? WWW.31WEST.NET

2. Table of Contents 1.Introduction ................................................................ 3-4 2.The importance of Service Level Agreement.............. 4-4 3.Developing Service Level Agreement ......................... 5-6 4.Components of a Service Level Agreement ................ 7-8 5.Types of Service Level Agreement ................................. 9 5.1. Customer-based Service Level Agreements ............. 9 5.2. Service based Service Level Agreements ............ 10 5.3. Multi-level Service Level Agreements ................ 10 6. Who uses SLA?...................................................... 10-11 7. Conclusion ................................................................. 12 8. Contact Us ................................................................. 13 WWW.31WEST.NET

3. Introduction: An SLA is a contract between internal or external user and the end user of the service. It specifies what the client will receive and make clear what is expected of the service provider. For service beneficiaries, SLAs help define service standard expectations and incentivize desired behaviour’s. For service providers, SLAs help define each party’s roles and responsibilities, provide regarding service evaluation, and establish mutual accountability dependencies exist. transparency where client WWW.31WEST.NET

4. As an example, internet service providers and telcos will usually include service level agreements within the terms of their contracts with customers to define the level(s) of service being offered in simple language terms. The importance of Service Level Agreement SLAs are used to define service standards, identify, and correct service-level issues to mitigate their impact Agreement between parties on the service level model, how that standard will be measured, and the penalties or remediation measures that will apply if the standard is not met is important for a constructive service relationship. on operations. WWW.31WEST.NET

5. Developing Service Level Agreement The development of any effective SLA begins with an array of in-scope processes. An effort should be made to completely understand the steps required to complete each process and the various points at which SLAs are necessary. If up-to-date process flow is available, that’s an ideal starting point for this analysis. If not, the documents will need to be created from scratch. WWW.31WEST.NET

6. Once documentation is developed, it should be reviewed to determine key risk areas, identify handoffs and dependencies, and establish timing requirements. Each of these parameters will help segregate the areas where SLAs are required. It is important for SLAs to be credible to ensure that the quality of deliverables is not compromised. Impractical SLAs can incentivize undesirable behaviors, modification of standard reviews and controls to meet overly aggressive timelines. including the This scenario often occurs in outsourcing relationships where the client’s demands are not always fulfilled in a controlled manner. Even when the client-service provider relationship is strong and effective, defining accurate SLAs based on the workflow and its dependencies is key to achieve the desired outcomes. WWW.31WEST.NET

7. Components of a Service Level Agreement Service description: What does the service provider offer? Reliability: When should the service be made available? Responsiveness: How fast should services be delivered? Reporting procedure: How and to whom should problems be informed? Performance monitoring: performance be monitored? Penalties: What implemented if the service provider fails to perform as stipulated? Constraints: Under what circumstances will the terms of the service level agreement be renounced? How will penalties will be WWW.31WEST.NET

8. Service level agreements benefit both parties by providing complete clarity as to what can be expected from the business relationship. The key to a service level agreement’s success rests in the metrics that are applied to establish whether the service provider is keeping their end of the deal or not. Thus, measurability is important. Quantifiable measurements are clear and specific. It can be divided into targets representing performance and minimums indicating performance. Incentives and penalties can be developed along with a clause indicating when the client or service provider is entitled to terminate the agreement. acceptable WWW.31WEST.NET

9. Types of Service Level Agreement Service applications; hence they have been divided into categories: level agreements have many Customer-based agreements: The service provider and customer put together an SLA based on the services that will be provided. For instance, an IT service provider may help your business with its workforce system or billing system. The SLA defines that relationship in detail. service level WWW.31WEST.NET

10. Service-based service level agreements: All customers working with a service provider receive similar conditions. If you have a mobile service provider, it will indicate what services it routinely offers and what additional services are available to its clients as part of the package. Multi-level service level agreements: A single SLA can be divided into levels that specify a string of customers using a single service. Who uses SLAs? SLAs are very popular in the IT world since companies often rely on external services such as cloud computing, hosting, and so on. However, any business relationship can be governed by a service level agreement. WWW.31WEST.NET

11. Nowadays, companies can outsource a wide range of services that contribute to their activities. Every time activities are outsourced; the SLA helps to define the relationship between client and service provider. This can cover anything from logistics providers to accounting services, consultants, and freelancers. As soon as a business function is delegated to an external service provider, the service level agreement can contribute to a beneficial relationship. WWW.31WEST.NET

12. Conclusion For an SLA to be efficient, both sides (client and service provider) must work towards its success. They should also be quantifiable and enforceable, with performance metrics and measurement tools established at the beginning. Meaningful SLAs can help ensure that quality and appropriate standards are maintained, while providing useful insights into operational processes. WWW.31WEST.NET

13. Contact Us 31WEST GLOBAL SERVICES 18 Bartol Street, San Francisco, CA - 94133, USA 4283 Express Lane, Suite 350-269, Sarasota, FL – 34238, USA 1732 1st Avenue #24945, NY – 10128, USA Phone Number: +1 (877) 262-5030 Email: sales@31west.net Visit: 31WEST GLOBAL SERVICES WWW.31WEST.NET