Service Level Agreement Should Contain

Is it an internal SLA between your sales and marketing departments? Both teams should have set out their goals in this section of the contract, while ensuring that the distribution can achieve its own goal if the marketing achieves its goal. While the customer will always tend to pay higher, it is important for both parties to set up fair dollars for different service delivery deficits such as downtime, TAT overruns, etc. It is preferable to limit penalties and compensation in order to avoid heavy losses. For the SLA to have a « bite », the lack of a level of service must have financial consequences for the service provider. This is most often done through the inclusion of a credit system for services. In essence, where the service provider does not meet the agreed performance standards, the service provider pays or credits the customer an agreed amount to encourage performance improvement. These service credits can be measured in different ways. For example, if the 99.5% level for reporting is not reached, the SLA could include a service credit that grants some price reduction for each 0.5% discount per week. Alternatively, service credits can be awarded if, for example, there are three or more errors to fulfill a service level within a certain period of time.

Here too, each level of service must be considered individually and a reasonable level of credit must be agreed between the provider and the customer if the agreed level is not reached over a given period. It is important to ensure that service credits are appropriate and encourage the service provider to do better, and that they intervene early enough to make a difference. This agreement is simple and simple. It also uses enumeration signs to make each point clear and understandable, security – All security measures taken by the service provider are defined. Typically, it revolves around the development and consensus on anti-poker, IT security, and privacy agreements. Then, the customer should indicate successively the expected performance standards for each service. It depends on the service. Based on the reporting example above, a potential service level could be 99.5%. However, this must be carefully weighed. Often, a customer wants performance standards at the highest level. While this is understandable, it could prove impossible, unnecessary or very costly in practice. On the other hand, the service provider may argue that service levels should be deliberately low in order to ensure that the service can be provided at a competitive price.

It`s all a matter of judgment and the customer needs to carefully evaluate each level of service – often individual services are weighted differently based on their business importance. Performance standards for the availability of an online service are generally high, as it is essential for the customer to ensure permanent availability of the service. Other individual services may be less important and service levels for these may be set at a lower level….