Service Level Agreement Key Clauses

Service Level Agreement Key Clauses

Typically, these processes and methods are left to the outsourcing company to ensure that such processes and methods can support the SLA agreement. However, it is recommended that the client and the outsourcing company collaborate during the negotiation of the SLA in order to eliminate misunderstandings about the process and method of support, as well as the management and reporting methods. Customers have confidence in leveraging their IT environment to support their processes and business goals. Every SLA that is worth its money should contain performance metrics such as device availability and incident response times that keep you honest about the quality of your services. Their metrics should be realistic, relevant and easy to quantify to avoid ambiguity about the guaranteed performance levels. Management service providers (MSPs) that work without a Service Level Agreement (SLA) fly without a network, and that`s a bad idea. Any customer relationship must be governed by an SLA forming your service obligation to the customer. Without them, customer quarrels are much more difficult to resolve. IT organizations that manage multiple service providers may want to enter into operational level agreements (AEOs) to explain how certain parties involved in the IT service delivery process interact with each other in order to maintain their performance. This section defines the parties to the agreement. For example, an IT service provider and an IT customer. A well-crafted SLA can save you from headaches by providing the services you provide, performance metrics, minimum response times for support calls, and customer responsibilities.

SLAs are an integral part of an IT provider contract. An SLA gathers information on all contractual services and their expected reliability in a single document. They clearly state metrics, responsibilities, and expectations, so that no party can invoke ignorance in case of problems with the service. It ensures that both parties have the same understanding of the requirements. Make sure the metrics reflect factors that are under the control of the service provider. To motivate good behavior, SLA metrics must reflect factors that lie in the control of the extern externator. A typical mistake is to sanction the service provider for delays caused by the customer`s lack of performance. For example, when the customer provides application code change specifications several weeks late, it is unfair and demotivating to keep the service provider on a predetermined delivery date. Designing the SLA from two sides by measuring the customer`s performance in interdependent actions is a good way to focus on the expected results. Define an appropriate baseline. Defining the right metrics is only half the way. To be useful, metrics must be tailored to a reasonable and achievable level of performance.

If strong historical measurement data is not available, you should be prepared to check and adjust the parameters later by a predefined process defined in the SLA. Then, the customer should indicate successively the expected performance standards for each service. It depends on the service. Based on the reporting example above, a potential service level could be 99.5%. However, this must be carefully weighed. Often, a customer wants performance standards at the highest level….