SLA agreement

What does the term SLA mean?

SLA (Service Level Agreement) is an agreement that defines the level of service that a company (contractor) provides to its clients (customer). It includes such parameters as response time to requests, recovery time after failures, service availability and other parameters that are important for customers. SLA allows controlling the quantity and quality of services provided and ensuring the stability of the system operation.

What is SLA for?

In simple words, SLA is a contract that specifies the order of services, quality parameters of service provision, what is the response time and what is the execution time.

An example of using SLA is a contract between a company and an IT service provider. In this contract, the following terms and conditions can be established:

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• The provider is obliged to provide services for a certain time (for example, 99.9% of the time per month).
• For each hour of service downtime, the client is entitled to compensation in the amount of 10,000 rubles.
• In case of breach of the terms of the contract, the provider is obliged to pay a fine in the amount of 50% of the cost of services for the month.
• The client has the right to terminate the contract if the provider violates the terms of the SLA more than two times in a row.

SLA allows the parties to agree on service quality standards and liability measures for their violation.

How to draw up an SLA?

To draw up an SLA, the following parameters need to be defined:

• Description of the service or service for which the SLA is being drafted.
• Service quality requirements in numerical or binary format (e.g. response time, availability level, information accuracy, etc.).
• Liability of the parties for non-compliance with SLA requirements (fines, compensation, etc.).
• Procedure for resolving disputes and disagreements between the parties.
• Term of the SLA and terms of its modification, extension or termination
• .

Once the SLA is drafted, it must be agreed upon by both parties and signed. The parties must then comply with all the terms of the agreement and monitor its fulfillment.