Service Level Agreement (SLA) is a legally enforceable document that defines the minimum performance criteria a service provider promises to meet while delivering a service to customer. Typically SLA is used to set out remedial actions to be taken and penalties to be imposed if performance metrics and service quality agreed to by both parties fall below the promised criteria. SLA may be used as a measurement tool as part of the legal contract.
The following are the benefits of a Service Level Agreement (SLA):
- Establishes two-way accountability for a delivered service.
- Creates levels of service that are negotiated and standardized.
- Enables customer to be able to control the cost if justification of service provider in spending is clear.
- Makes the terms and conditions clear in case of discrepancies between both customer and service provider.
- Clearly clarifies the business goals to be achieved by customer, and management and planning of business will become easier and more feasible if the goals and objectives are clearly defined.
- Enables the performance of delivered services to be more realistic to customer in expectation.
