Service Level Agreement - Explained
What is a Service Level Agreement?
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What is a Service Level Agreement?
A service-level agreement (SLA) simply means the contract or agreement that exists between a service provider and the end user or client. SLAs refer to outputs from a service provider that the customer is expected to receive. SLA describes the agreement and commitment to quality service, availability of service and fulfillment of responsibilities between a service provider and a customer. Whether it is an internal or external service provider, it is expected that the services and responsibilities included in the contract are met.
Back to: MARKETING, SALES, ADVERTISING, & PR
How is a Service-Level Agreement Used?
A service-level agreement can be a legal contract or informal agreement binding the relationship between service providers and their customers. SLAs define what a customer is expected to get from a service provider in a business agreement. However, any service rendered that is not in alignment with the contract between the service provider and the client is not a SLA. The main focus of the service level agreement is the output received by the customer as a result of the service provided. SLAs can occur at different levels which include;
- Service-based SLA: this is an agreement for all customers using a specific service, good examples are services provided by a mobile phone/service provider or a service provided by an email system that an organization uses.
- Customer-based SLA: unlike the service-based SLA, this type of SLA is customer specific. It is an agreement between individual customers.
- Corporate-level SLA: this is generic, it covers the agreement between a service provider and a corporate organization.
Other common levels of SLAs are multi level SLA, service-based SLA, customer-level SLA among others. There are some major components of Service Level Agreements, these include;
- The definition of services that a customer is entitled to.
- The specifics of services to be provided by the service provider without leaving any detail.
- The reliability and responsiveness of the SLA.
- Monitoring of SLA and periodic reports on its effectiveness.
- Modifications for reporting issues with the services provided.
- Response time-frame from the service provider on the complains by the customer.
- Periodic check on issues and time-range of when they will be resolved.
- Consequences of failure to keep to the terms and conditions of SLAs both by the customer and the service provider.
- The period for termination of service agreement.
There are certain metrics associated with service-level agreements, these metrics constitute the mode of operations and corresponding service-level objectives exhibited in service-level agreements. The common metrics of service level agreements include;
- The time taken to complete a task during the phase of a project (TAT; Turn-around Time)
- Time taken to recover after an outage of service. (MTTR; Mean Time to Recover)
- The percentage of calls answered within a time-frame (TSF; Time-service factor)
- The percentage of calls abandoned otherwise called (Abandonment Rate).
- The percentage of incoming calls that can be resolved without the caller calling back the helpdesk. (FCR; First-Call Resolution)
- What is a Unilateral Contract vs a Bilateral Contract?
- What is an Express Contract vs an Implied Contract?
- What are the requirements to form a Contract (Offer, Acceptance, Consideration)?
- What is an Enforceable Contract vs. a Valid Contract?
- What is a Void Contract vs a Voidable Contract?
- Adhesion Contract
- What is Mental Capacity to contract?
- What is the requirement of a Lawful Purpose?
- What are common types of Voidable Contract?
- When does an offer to contact terminate?
- Counterparty Definition
- Mirror Image Rule?
- Rule for Sale of Goods
- Silence is Not Acceptance?
- Mailbox Rule
- Shrink-wrap Agreement Definition
- Click-Wrap Agreement Definition
- What is Consideration?
- What is Promissory Estoppel?
- When is a contract required to be in writing Statute of Frauds?
- What type of writing satisfies the statute of frauds?
- Exceptions to the Statute of Fraud
- Documents Under Seal
- Who Can Sign Contracts on Behalf of a Company?
- E-Sign Act
- Privity of Contract
- Who are third-party beneficiaries to a contract?
- What is assignment and delegation of a contract?
- What is Performance, Substantial Performance, and Breach of a contract?
- What is performance of a Divisible Contract?
- When is a party's duty of performance discharged?
- What is tender performance of a contract?
- What are Impossibility and Impracticability
- What is a Frustration of Purpose?
- Acceleration Clause (Contracts) Definition
- What is Efficient Breach?
- Organization of a Contract
- Contract Representations & Warranties
- Contract Covenants
- What rules does a court follow in interpreting a contract?
- What is the Parol Evidence Rule?
- What is a complete integration vs a partial integration?
- Exceptions to the Parol Evidence Rule
- Patent and Latent Ambiguity in a Contract
- Service Level Agreement Definition
- Offtake Agreement