Service Level Agreement (SLA)

A service level agreement (SLA) is a formal document between a service provider and the user. It does not define how the service will be delivered but rather provides a measurable framework for the provision of that service. Some metrics that are used to define the SLA might include the mean time between failures, an agreed accepted level of downtime across an agreed time frame, support response and resolution times.

Advantages of a Service Level Agreement

Eliminates Unrealistic Expectations

Customers are frustrated when their expectations are not met, whether or not these expectations are realistic. A comprehensive  SLA effectively manages these expectations by communicating the abilities of the service provider.

Simplifies Complex Issues

Customers don’t usually want to understand how your service works. What they want to know is how it will affect them. The SLA, therefore, describes the issues that are likely to arise, what the immediate response will be and how the matter can be resolved if the response is not satisfactory.

Process

These are the Service Level Management sub-processes and their process objectives:

Maintenance of the SLM Framework

• Process Objective: To design and maintain the underlying structure of the Customer Agreement Portfolio, and to provide templates for the various SLM documents.

Identification of Service Requirements

• Process Objective: To capture desired outcomes (requirements from the customer viewpoint) for new services or major service modifications. The service requirementsare to be documented and submitted to an initial evaluation, so that alternatives may be sought at an early stage for requirements which are not technically or economically feasible.

Agreements Sign-Off and Service Activation

• Process Objective: To have all relevant contracts signed off after completion of Service Transition, and to check if Service Acceptance Criteriaare fulfilled. In particular, this process makes sure that all relevant OLAs are signed off by their Service Owners, and that the SLA is signed off by the customer.

Service Level Monitoring and Reporting

• Process Objective: To monitor achieved service levels and compare them with agreed service level targets (“Service Level Report”). This information is circulated to customers and all other relevant parties, as a basis for measures to improve service quality.