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According to ITIL 4, a service level agreement (SLA) is A documented agreement between a service provider and a customer that identifies both services required and the expected level of service. Simply put, an SLA defines what the IT service provider and the customer should expect when contracting for a service.
If you'd like to reap similar IT advantages, follow these five steps to draw up a great SLA.Step 1: Define your SLA scope.Step 2: Set response and resolution times.Step 3: Create ownership and escalation points.Step 4: Monitor performance and measure compliance.Step 5: Establish change control in the IT SLA.
Companies often create SLAs for their external suppliers, like outsourcing or technology vendors, but two departments within the same company could choose to implement an agreement as well.
There are three basic types of SLAs: customer, internal and multilevel service-level agreements. A customer service-level agreement is between a service provider and its external customers. It is sometimes called an external service agreement.
Steps in Developing An SLADefine the service you want to outsource.Determine what you can measure.Describe your business need and metrics.Obtain your baselines/set service targets.Decide on how you will monitor and review performance.Determine your reporting procedures.Identify the project's business owner/manager.More items...
How to write an SLAEvaluate your current service levels.Identify your objectives.Choose a contract format.Determine the level of service.Articulate the terms of the agreement.Clarify performance expectations.Outline payment expectations.Include appendices if necessary.More items...?
The SLA should include not only a description of the services to be provided and their expected service levels, but also metrics by which the services are measured, the duties and responsibilities of each party, the remedies or penalties for breach, and a protocol for adding and removing metrics.
The use of KPIs, minimum performance standards and worked examples or illustrations is common in many commercial and service level agreements including those falling within the housing/real estate portfolio management context.
The main elements of a good SLA.Overall objectives. The SLA should set out the overall objectives for the services to be provided.Description of the Services. The SLA should include a detailed description of the services.Performance Standards.Compensation/Service Credits.Critical Failure.
How to set SLAs and measure your performanceSet a baseline. The best place to start is by looking at your current SLAs, and how you're performing against them.Ask how you're doing.Build a draft of new SLAs based on the results of the steps above.Get support from management.