What is the full form of SLA?

What is SLA?

SLA can be expanded to Service Level Agreement. It is an agreement between a service provided and a client. The agreement includes the following

• Details of the service

• The standard of service that the service provider has to maintain

• Performance measurement metrics

Usually, SLAs are used by IT companies as they provide a surety that the terms written on the agreement will be fulfilled. If the service is not being provided as per the agreement, it may result in deductions. SLAs can be used internally within different departments or between different organizations.

Types of SLA

SLAs are of 3 types and they are discussed below −

Customer SLA

An agreement between an organization and a third-party service provider is known as Customer SLA. In such an agreement, a company may hire any service provider to provide the service at a reasonable cost.

Internal SLA

An agreement made between different teams or departments in an organization is called an Internal SLA.

Multi-Level SLA

This is an agreement made between an organization and multiple vendors, between multiple teams, or a vendor that provides its services to different customers.

How to write an SLA?

Here are the steps which you need to follow to write an SLA.

Service should be defined

The service needed by a client should be clearly mentioned in the document. It is better to cover the points listed below to make a clear agreement −

• List of stakeholders

• Contact information of the stakeholders

• Roles of stakeholders

• Service scope in which services that are included and excluded have to be mentioned

• Amount a customer has to pay and the frequency of payment

• Actions that the vendor has to take

• Circumstances under which the agreement can be cancelled

Service levels should be verified

The next step is the verification of the service levels. Service levels define the quality and its output. Service levels for each SLA differ from each other.

Checking performance metrics

Performance metrics should let the stakeholders know whether the service is being delivered successfully or not. Some of the metrics are listed below −

• Output quality

• Rates of defects

• SLA goals cost

• Security

Preparation of SLA document

Use all the information mentioned in the steps above to create an SLA document.

Review

A meeting with stakeholders should be organized in which SLA should be discussed and finalized. After this, the document should be signed by stakeholders.

Components of SLA

An SLA has many components and they are discussed below −

Overview of the agreement

The agreement overview consists of the names of the parties included. The start date along with the overview of the services is also mentioned.

Services description

SLA consists of the details of each service that a service provider will provide. The following are included in the description

• Ways of deliverance of services in any circumstances

• Maintenance will be offered or not

• Hours of operation

• Dependencies

• List of applications and technologies used

Exclusions

Services which will not be provided should also be mentioned in the agreement. This will reduce confusion.

Performance of Service

Performance levels and metrics are defined and the service provider and client have to agree on the list of metrics.

Redressing

If the service provider is unable to provide proper services, compensation has to be paid and this should be mentioned in the SLA.

Stakeholders

Stakeholders are the parties who are included in the agreement.

Security

The security measures that will be provided while delivering the services should be mentioned in the agreement.

Risk management and disaster recovery

Processes for risk management and disaster recovery should be mentioned.

Service tracking and reporting

This is a section in which the reporting structure has to be mentioned.

Review at regular intervals

SLA should be reviewed at regular intervals so that everything mentioned in the agreement can be reviewed. This review is needed as there are situations that some changes have to be made to enhance productivity.

Process of terminating SLA

There are situations which can lead to the termination of the agreement. These situations must be defined in the SLA. Notice period from the customer or the service provider should also be mentioned.

Signature

All the parties involved in the agreement should sign the SLA.

How to set SLA metrics?

These are the steps that you have to follow to set the metrics for SLA −

Metrics are set on the basis of services that a service provider provides. These metrics are different for each SLA. Metrics should be defined in such a way that they should be easily understood and followed. Some of these metrics are as follows −

Service availability

Time for the availability of the service is determined

Error rate

Rate of errors while providing the service is determined

Technical advancement

This is a metric which is used to check the technical services that a service provider offers. The service provider also has to mention the technology that will be used to provide the services.

Privacy and secrecy

The service provider has to mention the ways in which the confidential information of a client will be secured.

Results

The service provider has to tell the results of services previously provided or the ones that are being provided currently.

Advantages of SLA

SLA has many advantages and some of them are listed below −

• Customer experience is improved

• Employee experience is improved

• SLA is a great source of information for all parties

• Performance of employees can be enhanced

Conclusion

The full form of SLA is Service Level Agreement. SLA is an agreement which is signed between a service provider and a client. The document includes services to be provided, payment, duration of the service, and many more things. Both the client and service provider are authorized to cancel the agreement.

FAQs

Q1. How SLA can be expanded?

Ans.SLA can be expanded to Service Level Agreement.

Q2. What are the different types of SLA?

Ans. Different types of SLAs are as follows −

• Customer SLA

• Internal SLA

• Multi-Level SLA

Q3. Why SLA is needed?

Ans. The SLA is needed by an organization to improve its relationship with its customers.

Q4. Can SLAs be canceled?

Ans.Yes! SLAs can be canceled after performing some processes

Q5. What will happen if the service provider is unable to provide services?

Ans.The agreement can be cancelled in this case.