A Service Level Agreement (SLA) is an agreement between a service provider and a client. It builds a set of deliverables that one party has accepted to provide another. This agreement can exist between a company and its clients. It also exists in one department that delivers a recurring service to another department within that business.
Benefits of Service Level Agreement
Keeps Disappointments At Bay
Clients are disappointed when certain tasks and expectations are not kept, even though some of them may be unrealistic. A good SLA efficiently takes care of these situations by specifically defining the capabilities of the utility provider.
The general behavior of customers and clients is they usually would not want to learn or understand the functions of the service provider. However, what the clients are eager to know is how they will benefit them. An SLA agreement, therefore, defines and explains the problems that may appear during the agreement, what the prompt feedback should be and how the problem can be neutralized if the feedback is not adequate.
SLA Checklists and Requirements
- Statement of objectives.
- Scope of services to be covered.
- Service provider responsibilities.
- Customer responsibilities.
- Performance metrics such as response time, analysis time, etc.
- Penalties for contract breach or exclusions
How a Service Level Agreement is written?
Assessing The Current Situation
Reviewing the current situation! Yes, by making sure that the service provided is enough to satisfy customer expectations.
Defining The Level Of Science
By including things like scope of service needed, the purpose of the service, and all key information as well as the specific business processes.
Defining The Terms Of The Agreement
By defining the role of provider and responsibilities and its duties, the agreement’s duration, and the applicable service times. Also, the expectation of the service times, such as holidays, maintenance periods, and so on.
Setting Performance Levels While Creating Practical SLA
By ensuring that both the minimum and the expected levels for service, as well as many times the service is recognized either unavailable or restricted.
Recording Escalation Procedures
Setting service standards, showing the actions to be taken when service levels fall below these standards. These steps should add two things. They are the reason for missed activities and the reporting time and the problem resolution within a specified time.
Defining The Project’s Metrics
The metrics commonly used include:
- Mean time between failures.
- Mean time between service incidents.
- Mean time to restore service.
- Turn around time.
Stating Conditions And Fees
Stating both the conditions and fees. Also, saying the accurate conditions under which the fees may apply as well as any limitations. The more precise charges are the less chance for disagreement and the better the provider’s production.
State Practical SLA Exclusions
Prepare a list of exclusions in which time is not enforced against the SLA measurement, such as registered and emergency support, and things reboots and backups. Additionally, include the SLA provisions for the failure of a third party that the provider has no control over.
What is Service Level Management?
Service Level Management is an essential method for every IT service provider company. In that, it is accountable for getting and documenting service level targets. Additionally, duties within SLAs and service level requirements (SLRs) for each service and consistent activity within IT.
Key Components of Service Level Agreement
- Agreement Overview-This method has a primary agreement, including the parties including, the initial date and a general description of the services provided.
- Description of Services-The SLA requires accurate information of each service offered, under all reasonable circumstances, with the turnaround times included. Service descriptions should describe how the service is performed, whether maintenance service is provided, what the hours of service are, where dependencies subsist, an outline of the methods and a list of every technology and applications used.
- Exclusions-Distinct services that are not implemented should also be built to avoid confusion and eliminate room for ideas from multiple parties.
- Service Performance-Performance analysis metrics and performance levels are marked. The client and service provider should accept a list of all the metrics they will use to estimate the service levels of the provider.
- Redressing-Compensation or payment should be defined if the provider cannot properly fulfill their SLA.
- Stakeholders-It clearly defines the parties involved in the agreement and establishes their responsibilities.
- Security-All security actions that will be practiced by the service provider are specified. Typically, this comprises the drafting and agreement on anti-poaching, IT security, and non-disclosure agreements.
- Risk Management and Disaster Recovery-Risk management processes and a disaster recovery plan are established and communicated clearly.
- Service Tracking and Reporting-This section defines the reporting structure, tracking intervals, and the stakeholders involved in the agreement.
- Periodic Report and Change Processes-The SLA and all identified key production indicators should be constantly evaluated. This process is explained as well as a suitable process for making changes.
- Termination Process-The SLA should define the provisions under which the agreement can be completed or will expire. The notice period from both sides should also be verified.
- Signatures-Eventually, all stakeholders and approved members from both parties must approve the document to show their approval of every detail and process.
How do we draft a service level agreement?
- Define what the agreement involves.
- Write down a category from which your services fall into.
- Write down the purpose of the agreement.
- Note the goal of the agreement.
- Specify the objectives of the agreement.
- Certify how long the SLA will last.
- Confirm performance review protocols.
- Create a program of services to be provided.
- Describe services to be supplied in detail.
- Note the service provider’s requirements.
- Note the customer’s requirements.
- Email the customer regarding their requirements.
- Get approval from the customer requirements.
- Confirm the ways to get in contact.
- Double-check the SLA draft.
- Make the Service Level Agreement format and Email the copy of the approved SLA to the customer.
Documents Required For SLAs
- A statement of the parties involved-For customer and service-based SLAs, there are two parties included. They are the suppliers, who are supplying the services, and the customers who are receiving them. Additionally, for multilevel service SLAs, there are various departments, parties, or organizations involved. Moreover, it is important to declare who are all involved at all levels.
- A statement regarding the purpose of the SLA-In most SLAs, you will see a statement regarding what the SLA document is set out to do. Including its objective, goal, and purpose.
- A list of services being supplied-An SLA needs to note exactly what services are being supplied.
- An in-depth explanation of how services will be carried out, and when-It’s not enough to list the services being implemented. It also requires to be notified concerning what times the service will be brought out, where they will be carried out, to what standard, and what, exactly each service requires. This simply notifies the customer of what’s in store, plus, it holds the supplier responsible for the services presented.
- The supplier and customer requirements-The supplier’s responsibility is generally to do with the upholding of quality services. Meantime, the party getting the service has provisioned such as assuring the pay for the services frequently on time.
- Rules for post-agreement management-If all parties get approved for the agreement, it should ensure that the parties involved are happy. Additionally, there are no failures from the parties who are supposed to be upholding their requirements and responsibilities.
- Acknowledgment of the SLAs approval-If all the information is correct and the customers are happy with the SLA states, the receiver of the services will then approve the SLA. This will come in the form of a signature, or with a click of a button.
Service Level Agreement Process
3 Business Days: Upon contact, your request to file for a Service level Agreement will be received and our representative will be in touch with you to take your request forward. If we need more information from your end, we will call you as and when required. After we receive all your details, our in-house lawyers and legal experts, will create the legal notice and send it across for your view within 2- 4 business days.
2 Business Days: Your original price includes two rounds of iterations. Therefore, if you need any changes done to the Service Level Agreement, our lawyers will do the needful and send it across to you for your view once again.
FAQs on Service Level Agreement
What should a service level agreement be?
The SLA should encompass not only a classification of the services to be provided. It includes the required service levels but also metrics by which the services are measured, the functions and liabilities of each party, the support or penalties for violation, and a protocol for adding and removing metrics.
What are the 3 types of SLA?
There are three types of options structuring SLA. They are service-based, customer-based, and multi-level or hierarchical SLA. Many different factors will need to be recognized when selecting which SLA composition is most suitable for an organization to use.
What does a service level agreement template include?
A service level agreement template in India includes the company name, the service provider. It also includes the address of the company. Client name, a company incorporated under provisions of the Indian Companies Act. It must contain the term and termination, warranty and liability, undertakings, etc.