SLA Management is the key for making sure you get what you paid for.

What is SLA:

SLA stands for Service Level Agreement. Service Level Agreement (SLA) is a formal written agreement made between two parties: the service provider and the service recipient. Today's service level agreements are distinguished by clear, simple language and a tight focus on the business.

The SLA itself defines the basis of understanding between the two parties for delivery of the service itself. The document can be quite complex, and sometimes underpins a formal contract. The contents will vary according to the nature of the service itself, but usually includes a number of core elements, or clauses. SLAs are most common for provision of IT services, particularly Internet services.

This is clearly an extremely important item of documentation for both parties. If used properly it should:
 
• Identify and define the customer’s needs
• Provide a framework for understanding
• Simplify complex issues
• Reduce areas of conflict
• Encourage dialog in the event of disputes
• Eliminate unrealistic expectations

Other issues that are typically included in an SLA are:
• level of service
• incentive for exceeding service levels and
• penalties for not meeting service levels

Its Importance:

By checking the quality-of-service being delivered, both customer and provider can verify they get/deliver the agreed-upon levels of service.

The customer can verify that its money is well-spent or, using objective parameters, compare between the services provided by more than one service provider.

The provider can proactively make sure that the service it delivers is up-to-mark

          Hence, It is now widely accepted that service provision and receipt should be governed by an agreement. This is essential to define the parameters of the service, for the benefit of both the provider and the recipient.