servicelevelagreement

Service Level Agreement (SLA) is a formal contract between a service provider and a customer that documents the expected level of service and the duties of each party. An SLA specifies the service scope, performance targets, responsibilities, monitoring arrangements, reporting, and remedies for failure to meet agreed standards.

Key components typically include the service description, service level objectives (SLOs), defined metrics and measurement methods, incident and escalation procedures, service credits or penalties for non‑performance, change management processes, and the duties of both provider and customer. Exclusions, such as planned maintenance, may be listed. The document may also reference related agreements like operating level agreements (OLAs) that govern internal processes and underpinning contracts with third parties.

Common metrics cover uptime or availability, response times, incident resolution times, throughput or capacity, and support hours. Metrics are usually tracked over defined reporting periods and aligned with business impact. Different SLAs may apply to different services or customer segments, such as a cloud service SLA, a telecom SLA, or an internal IT support SLA.

SLAs can be customer-specific or generic and can combine multiple services into a single agreement or separate them. They are often complemented by service reviews and periodic renegotiation. The SLA lifecycle includes negotiation, formal approval, ongoing monitoring, periodic reporting, reviews, and renewal or termination.

Compliance with SLAs is supported by standards and best practices in IT service management, such as ITIL and ISO/IEC 20000. SLA governance involves transparency, dispute resolution mechanisms, and the use of service credits or escalation to enforce commitments.

Overall, an SLA aims to set clear expectations, align incentives, and provide measurable assurance of service quality. It is widely used in information technology, cloud services, telecommunications, and managed service arrangements.