What is a service-level agreement (SLA)?
You’ve probably heard of a service-level agreement (SLA) as a business owner. But what exactly is an SLA? And why does it matter?
An SLA is a contract between a service provider and a client that sets out specific terms regarding the services provided. A service-level agreement is a real commitment between a service provider and a client. Particular aspects of the service – quality, availability, responsibilities – are agreed upon between the service provider and the service user.
SLAs are critical because they ensure that both the service provider and the client are clear about:
- what is being provided, and
- what is expected in return?
This clarity can help avoid misunderstandings and disappointment down the line.
When drafting an SLA, it is essential to be as specific as possible about the services included in SLA and to agree on measurable metrics by which you and the provider will judge those services. If there are any problems with the service, it will be easier to identify where things went wrong and how to fix them later.
When to create a service-level agreement?
There are a few critical situations when you might want to create an SLA:
- When you’re outsourcing a vital service to a third-party provider
- When you’re entering into a partnership with another organization
- When setting up a new internal service within your own company.
In each of these cases, an SLA can help ensure that everyone is clear about their roles and responsibilities and that the service quality meets everyone’s expectations.
SLAs can also be helpful in other situations, such as when you’re working with freelancers or contractors. An SLA can spell out project deadlines, payment terms, and communication expectations in these cases. It can help avoid misunderstandings and support the project running smoothly.
Who should prepare a service-level agreement?
Ideally, the service provider and the client should draft the SLA. This way, both parties can ensure that SLA covers all needs and that parties are comfortable with the terms of the agreement.
If you’re unsure where to start, a few template SLAs are available online that you can use as a starting point. Once you’ve drafted an SLA, it’s essential to have it reviewed by a lawyer to ensure everything is in order and that the terms of the agreement legally bind both parties.
Should I use a lawyer to draft and check SLA?
We recommend you have a lawyer check your SLA before signing it. This way, you can be sure that everything is in order and that the terms of the agreement legally bind both parties.
What goes into an SLA?
An SLA should spell out what services are in the project’s scope, the delivery of those services, and what metrics will measure service delivery and quality. It should also include contact information for both the service provider and the client and details about handling changes or problems with the service. Finally, an SLA should have a precise expiration date so that both parties know when it needs to be reviewed or renewed.
How to create a service level agreement?
There are a few key things to keep in mind when creating an SLA:
- Be clear about the services. What for exactly will the service provider be responsible?
- Agree on measurable success and quality metrics for the service delivery. It could include uptime, response time, or resolution time.
- Make sure both parties understand and agree to the terms of the SLA, including who is responsible for what
- What happens if the SLA is not met.
Creating an SLA can help avoid misunderstandings and disappointment down the line, so it’s essential to get it right. With these tips in mind, you should be well on putting together a service-level agreement that works for you and your service provider.
What should I do next after signing a service-level agreement?
Reviewing your SLA regularly and renewing it before it expires is essential. This way, you can ensure that the agreement still meets your needs and that both parties are still committed to upholding the terms of the contract. Contact your service provider or lawyer for guidance if you have any questions or concerns about your SLA.
Summary
A service-level agreement is a commitment between a service provider and a client. Particular aspects of the service – quality, availability, responsibilities – are agreed upon between the service provider and the service user.
SLAs are critical because they ensure both parties know what is being provided and can help avoid misunderstandings. When creating an SLA, it is vital to be clear about the services being provided and to agree on measurable metrics by which those services will be judged.
Reviewing your SLA regularly and renewing it before it expires is also crucial to keep the agreement up-to-date. If you have any questions or concerns about your SLA, don’t hesitate to contact your service provider or lawyer for guidance.
If you have any questions or concerns about your SLA, don’t hesitate to contact your service provider or lawyer for guidance.