Service Level Agreement And Its Significance

A Service Level Agreement (SLA) is an important document that records specifics of a deliverable or project from inception to end.

Service Level Agreements are significant sources of data and information, including keeping track of goals met and conditions not fulfilled. An SLA is a necessary component in cases where critical projects and final-stage deliverables are handed over to an external vendor.

While drafting an SLA might be more of a norm than exception, when you draft a Service Level Agreement, you set down rules that determine how work will be measured and performance be monitored nd measured. Further, SLA will also eventually determine the quality of services provided by the vendor.

Why do I need one?

It's a good idea to create a Service Level Agreement because it does not leave anything to chance or expectations. An SLA brings together parties involved in an agreement, outlining details involving work, resources and deadlines. Typically, an SLA will outline in writing the expectations and the responsibilities of both parties. Thus, while the party that needs the work done has a clear idea of what it will be receiving, while the vendor or party that will execute the project provides the customer with a true estimate of its capabilities.

In this manner, the expectations of services and work to be received are legally bound and no longer open to individual interpretation. Thus, one party cannot tell the other that it is not doing work properly, or that work is not going as per schedule. In terms of high-value contracts, where significant amounts of money change hands, an SLA can prevent miscommunication and misunderstanding. Thus, a Service Level Agreement protects the interests of involved parties in the agreement.

Elements of a Service Level Agreement

Typically, an SLA will contain two kinds of elements: the service element and the management element. Service elements include:

- Availability and provision of customer requirements. In the case of a particular service being unavailable, the vendor may propose an alternate, which can then be assessed for feasibility

- Costs for different services and requests

- Deadline and timeframe for processing the request is also part of the SLA

- Outlining troubleshooting or steps to be taken in case of requirements not being met

Management elements include:

- Clearly defined procedures and processes, including mutually agreed-upon methods

- A dispute-resolution process in the case of conflict

- A clause that provides protection from third-party litigation that may arise out of failure to adhere to agreement

by: Mark Waltzer

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