Service Level Agreement(SLA)
What is a SLA?
A Service Level Agreement (SLA) is a contract between IT department or between Internal IT department and Employees that specifies, usually in measurable terms, what services the IT department will furnish and what penalties the IT department will pay if he cannot meet the committed goals.
The SLA will drive IT department differentiation during the exploitation (contributing to this customers trust) in terms of managed reliability and monitoring capabilities.
Benefits of a SLA
The importance of SLAs in ensuring that expectations are being effectively managed cannot be overstated. Additionally, SLAs bring with them several clear advantages , including the following:
Improved the Employee experience
Improved the customer experience
Established and trusted source of information
Organised resource allocation
Increased productivity and performance
Key components of SLA
Agreement overview: This first section sets forth the basics of the agreement, including the parties involved, the start date and a general introduction of the services provided.
Description of services: The SLA needs detailed descriptions of every service offered, under all possible circumstances, with the turnaround times included. Service definitions should include how the services are delivered, whether maintenance service is offered, the hours of operation, the locations of dependencies, an outline of the processes, and a list of all technologies and applications used.
Exclusions: Specific services that are not offered should also be clearly defined to avoid confusion and eliminate room for assumptions.
Service performance: Performance measurement metrics and performance levels are defined. The client and service provider should agree on a list of all the metrics they will use to measure the service levels of the provider.
Security: All security measures that will be taken by the service provider are defined. Typically, this includes the drafting and consensus on IT security and nondisclosure agreements.
Risk management and disaster recovery: Risk management processes and a disaster recovery plan are established and clearly communicated between the parties.
Service tracking and reporting: This section defines the reporting structure, tracking intervals and stakeholders involved in the agreement.
Periodic review and change processes: The SLA and all established key performance indicators (KPIs) should be regularly reviewed. The review process is defined as is the appropriate process for making changes.
Termination process: The SLA should define the circumstances under which the agreement can be terminated or will expire. A notice period from either side should also be established.
Signatures: Finally, all stakeholders and authorized participants from both parties must sign the document to show their approval of every detail and process.
Types of a SLA
Internal SLAs: Internal SLAs are agreements between IT departments or teams inside an organization. They set service expectations, duties, and performance targets for internal service providers and internal consumers. They help the company run smoothly.
External SLAs: External SLAs are IT department-external clients agreements. These SLAs outline a vendor’s terms, conditions, and service levels. Outsourcing or relying on third parties for services often requires external SLAs.
Customer-focused SLAs: Customer-focused SLAs address particular client demands. These are customized to match a customer’s needs. Customized service industries employ them.
Vendor/Supplier SLAs: Vendor and supplier SLAs set performance and service requirements for a company. SLAs ensure that vendors and suppliers satisfy quality and delivery requirements, allowing the business to maintain a smooth supply chain and meet service obligations.