Service Level Agreement (SLA)

Service Level Agreement (SLA)

A contract between a service provider and a client, outlining performance standards and responsibilities.

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Description

A Service Level Agreement (SLA) sets measurable service expectations between a provider and a client. Common in IT, telecommunications, and managed services, SLAs define uptime guarantees, response times, service scope, and penalties for non-compliance. They ensure accountability by setting clear performance benchmarks. Key components include performance metrics, issue resolution processes, and reporting standards. Businesses rely on SLAs to manage vendor relationships and maintain service quality. Well-structured SLAs help mitigate risks, improve efficiency, and enhance customer satisfaction.