Description
A Service Level Agreement (or SLA) is the part of a contract which defines exactly what services a service provider will provide and the required level or standard for those services.
Objective:
- The objective of this stage is to give guidance on how to draft a Service Level Agreement (SLA) that is clear, concise and easy to manage.
Output:
- A Sound Service Level Agreement
DRAFTING THE SERVICE LEVEL AGREEMENT
What is a Service Level Agreement?
A Service Level Agreement (or SLA) is the part of a contract which defines exactly what services a service provider will provide and the required level or standard for those services.
The SLA is generally part of an outsourcing, contracted or managed services agreement,
or can be used in facilities management agreements and other agreements for the provision of services.
What should be included in an SLA?
A properly drafted and well thought out SLA should have the following elements:
- It will state the business objectives to be achieved in the provision of the services.
- It will describe in detail the service deliverables.
- It will define the performance standards the customer expects in the provision of the services by the service provider.
- It will provide an ongoing reporting mechanism for measuring the expected performance standards.
- It will provide a remedial mechanism and compensation regime where performance standards are not achieved,
- whilst incentivising the service provider to maintain a high level of performance.
- It will provide a mechanism for review and change to the service levels over the course of the contract.
- Ultimately it will give the customer the right to terminate the contract where performance standards fall consistently below an acceptable level.