Service Level (Provider) Agreement

It is an agreement between the network service provider and the customer which specifies, in measurable terms, that what services the network service provider will furnish to the latter.

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What is a Service Legal Agreement?

A service level agreement (SLA) is a contract between a service provider (either internal or external) and the end user that defines the level of service expected from the service provider. SLA’s is an output-based method which defines specifically what the customer will receive. This is a part of standardised service contract where a service is formally defined. Particular aspects of service i.e., scope, quality and responsibility are agreed between the service provider and its user. It establishes customer expectations with regard to the service provider’s performance and quality in a number of ways.

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Advantage

1

It promotes guarantees: It provides security for both the client and the vendor. Both have a legal protection backed by the contract so that non-compliance of it will be prevented or punished.

2

It creates transparency: The contracts between the parties were written and signed which creates transparency. This is directly connected to goals projection and quality indicators established in the original agreement.

3

Greater credibility: Providing guarantee to clients signed in a document ensures credibility, going beyond delivering good results.

4

Favors companies of all sizes: This is beneficial to end number of customers especially small and medium sized enterprises.

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FAQ

It is an agreement between the network service provider and the customer which specifies, in measurable terms, that what services the network service provider will furnish to the latter.

Service level measures the performance of the system. Certain goals are defined and the service level gives the percentage to which those goals should be achieved.

It provides an opportunity to build a proximate working relationship between the network service provider and the customer. Expectations for services rendered, how they will be delivered and at what costs provide an open and transparent environment; all things were included in the agreement.

An SLA has following information contained in each agreement namely: • Description of the services provided to the customer; • Description of performance service level used by the provider in order to demonstrate the quality of services provided to the customer; • Roles and responsibilities of the customer; • Roles and responsibilities of CIO/ OFT; • Rates for service provided and billing process; • Dispute resolution process; • SLA renewal process.

• Uptime: This applies to important equipment, software or services that your business needs. • Responsive Times: This measure states how long it takes for a network provider to respond when someone raise a request for support.

Your SLA will detail what compensation you will receive when the network service provider fails to keep his promise. Usually, compensation takes the form of an account credit or it can also provide a get-out clause, so that you can terminate the contract if the supplier repeatedly fails to meet the SLA.

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