SLAs

SLAs, or service level agreements, are formal contracts between a service provider and a customer that define the expected level of service, performance metrics, and responsibilities of each party. They establish a clear understanding of what constitutes acceptable service and provide a framework for accountability, governance, and remedies if commitments are not met. SLAs can cover information technology, telecommunications, outsourcing, cloud services, and other service arrangements, and may be part of a larger contract or a standalone document.

Typical components of an SLA include a description of the service, specific performance metrics and targets, measurement methods and data sources, service hours and support levels, incident and problem management processes, escalation paths, and roles and responsibilities for both parties. The document also often outlines reporting requirements, change management procedures, security and confidentiality provisions, and terms regarding compliance and audit rights. Remedies for failure to meet targets, such as service credits or termination rights, are commonly included, along with any exclusions or limitations.

Common metrics used in SLAs include uptime or availability, response time, resolution time, recovery time objective (RTO) and recovery point objective (RPO), throughput, capacity limits, error rates, and customer satisfaction scores. Targets should be realistic, measurable, and reviewable, with objective data collected through defined monitoring and reporting processes.

Types of SLAs vary, including external SLAs for customers, internal SLAs between units within an organization, and multi-supplier SLAs. Effective SLAs require clear definitions, realistic expectations, regular monitoring, periodic review, and provisions for renegotiation as business needs evolve.