A service level agreement (SLA) is a contract that defines the level of service expected by a customer from a managed service provider (MSP) or supplier. It contains a list of services, responsibilities, and objectives a customer can expect a service provider or supplier to provide.
SLAs are crucial to ensuring that the MSPs are meeting their agreed-upon responsibilities. At the same time, an SLA is beneficial for an MSP as it can help MSPs legally outline the expectations and refuse services that exceed those expectations.
Service level agreements are generally negotiated between customers and service providers. They can include metrics for measuring the accuracy and extent to which the MSPs provide the services and the penalties if the level of service isn’t maintained. Along with the level of service, SLAs help specify the exact timing when the services will be delivered.
SLAs are also crucial for establishing benchmarks or performance targets for service providers to meet. Customers can use such benchmarks and service characteristics to compare different service providers.
SLA management or service level management (SLM) is the process of managing SLAs and ensuring all services and processes provided comply with the level of service specified in the contract.
It involves defining, agreeing, documenting, monitoring, measuring, reviewing, and reporting the level of services offered by MSPs. ITSM tools can help manage service level agreements, track the level of service the SLA outlines, and bring overall transparency around service delivery.
SLM includes maintaining the SLM framework, which involves designing and maintaining the structure of customer agreements and providing templates for different SLM documents.
Identification of customer requirements is another crucial aspect of SLA management. It also involves monitoring and reporting the effectiveness of service and seeking regular customer reviews.
Adept SLA management:
Knowing the different types of SLAs can give you a better understanding of how SLA management applies to each. The following are three main types of service level agreements.
A customer-based service level agreement is used for specific customers and includes relevant services a customer needs. It generally contains information about the types of services and the expected time of delivery.
Service-based service level agreements are created by service providers for a single type of service that’s offered to all of its customers. Since the service has an unchanging standard, it’s convenient and straightforward to service providers. It’s useful when a business offers specific services with different response times and resolutions.
Multi-level service level agreements are created by a service provider for larger customers covering numerous services, multiple departments, or several geographical locations. Multi-level SLAs are the most complex form of service level agreements.
Multi-level SLA can be categorized into three sub-tiers:
SLA management is responsible for ensuring that both the service provider and the customer have a clear understanding and expectation about the level of service to be delivered. This benefits both the parties involved; service providers don’t have to provide services exceeding the scope, and customers will get the exact level of service they agreed upon.
The following are some of the notable benefits of SLA management:
SLA management necessitates regular goal analysis, defining performance standards, and tracking key performance metrics.
The following are some of the best practices for effective management of SLAs: