What is SLA? and Types of SLAs

Service Level Agreement is a contract between two or more parties where one is a client and the other is a service provider. This may be a formal or informal “contract” that binds legally (e.g. internal relations between departments). This agreement may include separate entities or groups within a company. Contracts between the Service Provider and other third parties are often referred wrongly as SLAs – there is no “contract” between the third party, as the level of service is set by the customer; These contracts are simply “contracts”. However, operating-level agreements or OLAs can be used by internal groups to support SLAs. If certain aspects of the Service do not agree with the Customer, this is not “SLA”.

SLAs typically include many elements, ranging from the definition of services to the end of the contract. To ensure that the SLAs are continuously fulfilled, these agreements are often formulated with specific boundary lines, and the parties involved must meet regularly to set up an open communication forum. Rewards and penalties applicable to the provider are often mentioned.

Most SLAs are subject to periodic (annual) re-examination to make changes. Since the late 1980s, SLAs have been used by fixed-line telecommunications operators. SLAs are so widely used these days, large corporations have many different SLAs within the organization.

Two different units in an enterprise script are an SLA, one of which is the customer and the other is the service provider. This practice helps maintain uniformity between different units within the company and multiple locations within the organization. This internal SLA scripting enables you to compare the quality of service between an internal department and an external service provider. The output that the customer receives as a result of the service provided is the core of the service level contract.

Service-level contracts are also defined at different levels:

Customer-Based SLA

A contract with the individual customer group that covers all the services they use. For example, an SLA between a large system supplier (IT service provider) and the financial sector for services such as the financial system, payroll, billing system, procurement / procurement system.

Service-based SLA

A contract is all customers who use the services provided by the service provider. For example, a mobile service provider provides a regular service to all customers and provides some maintenance services as part of a global payment offer.

An email system for the entire company. This type of SLA is likely to cause difficulties, as the amount of services offered to different customers can vary (e.g. head office staff may use high-speed LAN connections, and local offices may need to lease less).

Multilevel SLA

SLA is divided into different stages, each addressing different clients for the same services in the same SLA.

Corporate-level SLA

It covers the issues of all general service management (often abbreviated as SLM) relevant to every customer throughout the organization. These issues can be less volatile, so updates (SLA reviews) are less frequent.

Client-level SLA

Covers all SLM issues related to a particular customer group, regardless of the services used.

Service Level SLA

This covers all SLM issues associated with specific services in relation to this particular customer group.

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