In simpler terms, Service Level Agreement (SLA) is an agreement between two or more parties one of which is a consumer and the other is a service provider. The difference between (SLA) and standard form of contract is that the terms and condition is there given by the service provider or the consumer and the other party have to agree on that condition. In other words, it is just a contract.
The essence of SLA lies in the fact that the conditions mentioned on the agreement aka the performance metrics are fixed to my mutual consent of both consumer and service provider. The SLA can be both internal i.e. b/w various department within the same organization or it could be external b/w different organization.
Previously this type of agreement was more prevalent in the telecom sector but now it has broader dimensions within wide range of sectors. Within a same organization different department such as IT, HR, real state tends to engage into service level agreement. This is because it increases the level of service and also it acts as a parameter to compare it with external service providers engaged in same type of service. There is also scope of annual revision of the agreement.
Types of Service Level Agreements
- Costumer based SLA – It is an agreement with an individual customer group, includes all the services they use. For example: SLA between a service provider (IT Company) and customer (a bank) includes services ranging from developing a security system, online banking, app based services etc.
- Service based SLA– It covers all the customer using the service which is being provided by the service provider. For example: a mobile phone company offers certain free repairs by paying a minimal amount initially.
- Multilevel SLA: The SLA is divided into different levels, each addressing different set of customers for the same services, in the same SLA.
- Corporate-level SLA: Covering all the generic SLM (Service Level Management) issues appropriate to every customer throughout the organization. These issues are likely to be less volatile and so updates (SLA reviews) are less frequently required.
- Customer-level SLA: Covering all SLM issues pertinent to the particular customer group, regardless of the services being used.
- Service-level SLA: Covering all SLM issues appropriate to the specific services, in relation to this specific customer group.
Advantages of service level agreements
- It helps to improve the quality of service
- It helps to keep a check on the service providers service
- It helps to draw confidence of the consumers
- It helps in the smooth working within the organization
- It has scope of annual revision.
It is based on the agreement between both customer and service provider.
Q)What is the purpose of a Service Level Agreement (SLA)?
Q)What information is contained in a Service Level Agreement?
Q) Is there provision for confidentiality ?
Q)Whether can I put a provision of revision in my service level agreement?
How it is done?
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Step1:- Receive an expert counseling on Service Agreement from our Startup Lawyer
Step2:- Provide basic inputs about service you are going to put on offer and terms & conditions of it
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Step5:- Get it done on stamp paper (Optional, as per your wish)
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