Service Level Agreement Short Note

Typically, these processes and methods are left to the outsourcing company to determine that these processes and methods can support the ALS agreement. However, it is recommended that the client and the outsourcing company work together during the SLA contract negotiations to clear up misunderstandings about the support process and method, as well as management and reporting methods. If both parties agree to include merits in ALS, the process should be carefully defined at the beginning of the negotiations and incorporated into the service level methodology. SLAs are used to establish measurable indicators for the service we provide, to ensure that our customers` expectations are met. In the case of clearly defined penalties, the customer feels properly compensated and the discontent is stopped. Compensation also becomes an important KPI for the supplier to measure the capacity and productivity of its team. This helps them improve service, retain existing customers and gain new credentials. Example 2: It is the customer`s responsibility to obtain and renew software licenses from time to time. If the support team is asked to install software that is not authorized at the time of installation or thereafter, the legal responsibility rests solely with the client. The customer frees the service provider and its employees from any legal action for the installation and maintenance of unauthorized software. SLA multi-steps It is created by a company for a large customer that covers several services, several departments, several regions, etc.

Multi-stage SLAs are complex documents. The goal should be to fairly integrate good practices and requirements that maintain service efficiency and avoid additional costs. Example of the magnitude of offences: KPI: All problems must be resolved within 3 hours. A delay of 20 minutes is acceptable. Then, each 30-minute delay will be a $XX penalty. A delay of more than 5 hours is considered a non-delivery of the service and is accompanied by a $YY penalty. Simply having service level agreements is not a guarantee that they will be respected. If an agreement is negotiated with management and then buried somewhere in a file, the person actually doing the job may not be aware of the expectations it has. It will therefore help to ensure compliance with the requirements by looking at the standards and basic measures that apply to the task. Exclusions: That is another very important element.

Both sides must agree on all exclusions. Exclusion of services, geographies, days, schedules, environmental conditions, etc. Most service providers have standard SLAs – sometimes several, which reflect different levels of service at different prices – which can be a good starting point for negotiations. However, these should be audited and modified by the client and the lawyer, as they are generally favourable to the supplier.