Service Level Agreement (SLA Agreement)

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Service Level Agreement (SLA) - Overview

A Service Level Agreement (SLA) is a contractual agreement between a service provider and a customer that defines the level and type of services required by the customer. The SLA holds a written framework that specifies the nature of the services that will be provided by the supplier, provider, or business to the customer. The primary purpose of an SLA is to create and implement a set of deliverables that are provided by one party and accepted by the other. This type of agreement can be formed between a company and its clients or even between departments within the same company. The SLA serves as a contract or agreement outlining the level and type of service the customer can expect from the provider. It is an end-product-based agreement that aims to explain the nature, quality, and scope of the business or service that the customers will receive.

Requirement for SLA

  1. The performance metrics
  2. Responsibilities of the Service Provider
  3. Penalties that will be levied for any breach or omission
  4. Scope of the Services covered
  5. Responsibilities of the Customer or Client
  6. An Objective Statement

Advantages of Service Level Agreement

  1. Simplifies complex issues for customers
  2. Answers questions and addresses satisfaction
  3. Prevents unrealistic expectation from customers.
  4. Explains the expectations and abilities of the service provider

Different Levels of Service Level Agreement

  1. Customer-Centric SLA: This type of SLA pertains to the services provided to individuals or groups of customers.
  2. Service-Centric SLA: A large group of customers receiving a particular service sign this agreement with the service provider.
  3. Multi-Level SLA: This agreement is categorized into levels by sets of customers for receiving similar services, and it includes:
    • a. Corporate Level: It covers the same matters for the entire company.
    • b. Customer Level: It pertains to matters specific to an end-user or customer. Meanwhile, the SLA for a particular service is the responsibility of the service level.

A Service Level Agreement (SLA) is a contract between a user and a service provider that outlines the level and type of service to be provided. While it doesn't specify how the service will be delivered, it does establish a timeframe for the provision of that service.

Importance of Service Level Agreement

  1. Provides precise, unambiguous, and clear details about the service.
  2. Describes the issue, its severity, and the expected response time.
  3. Explains the consequences if the objectives are not met.
  4. Defines the hierarchy, expertise, and operational agreements of the service provider.
  5. Lists the locations where the service will be offered and any exceptions.
  6. Establishes penalties and rights for customers.
  7. Maintains a positive and transparent relationship between the service provider and customer.
  8. Outlines the commitments the service provider will fulfill to ensure customer satisfaction.

Writing an SLA

  1. Evaluate and ensure that the service meets customer expectations and satisfaction levels.
  2. Determine the service scope, purpose, and other relevant information necessary for the service.
  3. Establish the agreement's roles, responsibilities, and duration, including service availability during holidays and other important dates.
  4. Set performance levels to ensure the expected service levels are met and provide procedures in case of falling below the service level agreement or missing activities.
  5. Define project metrics such as mean time between incidents, turnaround time, uptime, mean time for service restoration, and other relevant metrics.
  6. Specify terms, conditions, rules, and payment norms associated with the service, including total payment and timeframes.

Drafting of SLA

  1. Outline the contents and details of the SLA.
  2. Categorize the type of service that will be provided.
  3. State the purpose or objective of the SLA agreement.
  4. Specify the duration or length of time that the SLA is valid for.
  5. Confirm the protocol for reviewing and evaluating performance.
  6. Develop the service programs that will be offered.
  7. Describe the specific services that will be provided.
  8. Lists the requirements and responsibilities of the service provider.
  9. Documents the requirements and responsibilities of the customer and obtains their confirmation.
  10. Review and verify the drafted SLA.
  11. Send the SLA draft to the client for review and approval.

Role of Filing Buddy in Drafting Service Level Agreement

  1. Access to Top Attorneys

We have connections with highly knowledgeable attorneys and top-rated lawyers in the industry.

2. Legal Documents Drafted by Professionals

You can receive your first draft of the document within four days, which will be prepared by expert lawyers.

3. Complimentary Revisions

We offer two rounds of revisions free of charge. If you require any changes or are dissatisfied with the drafted document, we will make the necessary modifications without any extra cost.

Registration Procedure of Service Level Agreement in India

Communication and Requirements: 

  1. Send a request via email to initiate the SLA process.
  2. Our executive will communicate with you regularly to understand your requirements and best practices for the SLA.
  3. Provide any additional information if requested by our team.
  4. Once all the necessary information is gathered, we will proceed with your request.
  5. Expect regular updates and reviews within 3 to 4 working days.
  6. Feel free to contact us to discuss any modifications or specific changes to the drafted document.

Revision Rounds: 

  1. If you are not satisfied with the drafted document or want to include additional points or modifications, our lawyers will immediately work on it again.
  2. We offer two free rounds of revisions included in the price.

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