A Service Level Agreement or SLA is a commitment between the service provider and the client/customer. Such an agreement defines the level of service expected by the customer from a service provider. The Agreement clearly outlines the roles of both the parties, the level of expectation to be met by the service provider and the remuneration to be paid for the services provided. SLAs help manage customer expectations and define the severity levels and circumstances under which they are not liable for outages or performance issues. It ensures that both the parties to the agreement carry out their roles and responsibilities, effectively.
There are three types of Service Level Agreements available currently:
1. Customer Level Agreement
2. Internal Level Agreement
3. Multi-Level Agreement
SLAs assist in defining and setting clear expectations of the parties in contractual terms. It holds the service provider accountable for delivering on their promises in a timely manner.
