Procedure to write a Service Level Agreement (SLA)
Most firms frequently utilize Service Level Agreements (SLAs) which is a document signed by two parties to outline specifics of their dealings with other organizations or people. An SLA helps you get the service you expect while improving your working relationship with your service supplier. Before diving into more let us first understand what a Service Level Agreement is.
You will learn about Service Level Agreements in this post and you will also comprehend how a service level agreement would benefit your business if you follow the procedure to write a service level agreement.
Meaning of Service Level Agreements (SLA)
A service level agreement (SLA) is a contract that specifies the services that will be provided by a supplier and the necessary level of standard for those services. A service level agreement is a written statement regarding the quality and level of service that a service provider is required to meet its customers.
It is an agreement of expectations signed between the service provider and a service user regarding the quality of service that the provider is obligated to meet. A service level agreement (SLA) is a document that details the kinds and quality of services that a service provider will give to a client. A typical Service Level Agreement outlines the description of the duties that are to be provided and also lays down possible sanctions if the supplier fails to uphold their end of the bargain.
Need for Service Level Agreements(SLA)
A service Level Agreement (SLA) is a contract that is to be signed by a supplier and a customer in order for each of them to ensure consistent results. A provider requires a Service Level Agreement (SLA) in order for them to assist in maintaining customer requirements and to specify the degrees of severity and situations in which they are not responsible for failures or performance problems. A customer requires to sign a Service Level Agreement(SLA) contract in order to ensure that the level of service provided is high. The customer can use their SLA to compare to other suppliers’ SLA documents.
If you follow the procedure to write a service level agreement, it will help you know the service performance and will help you apply possible sanctions against the recipient if they breach the agreement in any way.
Moreover, following the procedure to write a service level agreement will also assist you to utilize an SLA agreement to outline the procedures for resolving service concerns.
What is the procedure to write a Service Level Agreement?
The procedure to write a Service Level Agreement is described in the following section.
1. Examine the standard of your present services
You can begin the drafting of your SLA agreement by explicitly outlining the services that are currently received and the level at which they’re furnished. When you start implementing an SLA, use your analysis of your existing service situations to help direct the process of developing goals and requirements for various services and service kinds. Consider carrying out this assessment for any provider for whom you may want to build an SLA.
2. Determine your goals
Evaluate the degree of service you currently receive with your present provider and ponder about the volume of services you would want to receive from the new ones. You should be able to determine the adjustments that have to be made in your new contract in order to meet your requirements if the standard of service you require is greater than what is presently being provided. Before you sign the final SLA contract, double-check that the service provider is specifically addressed in your contract.
3. Pick a format for your agreement
In the next procedure to write a service level agreement, you can think about a structure for your SLA that will support the achievement of your chosen goals. Some businesses use the same SLA format for every contract. As such, you can reflect on how you may adapt that format to suit your conditions. You will have to be very careful while choosing a format for your agreement so that it is to your taste. You should take into account the types of details you would want in your Service Level Agreement document including the length of your agreement as well as various elements that could influence your SLA. You can consult a specialist, if necessary, before making any legal-related changes to your SLA.
4. Articulate the quality of service
After assessing the quality of your present service and considering your future plans, you need to figure out the standard of service you require to fulfill your objectives. This may take into account elements like the scheduled duration of service, the service’s scope, scalability, and goal. This will assist the customer in creating the desired service levels to achieve their goals, and it should be clear to the service provider what the service target is.
5. Stating the agreement’s condition
A thorough explanation of the services should be included in the SLA including each party’s commitment. Customers’ requirements, service delivery characteristics, the period of the contract, and any other crucial elements should be clearly listed in your written document.
6. Make performance goals clear
The performance requirements must be established between the provider and the client in light of the projected workloads, and the service standards may need to adjust as these workloads change throughout the contract. An SLA will offer a continuous reporting system for gauging the anticipated performance criteria. Some businesses define precisely what constitutes different service standards. Consider including assessment criteria once you’ve specified the service’s scope, the standard at which it should be delivered, and any applicable special terms of your agreement.
7. Specify the expected payment terms
You have to include any other provisions in your Service Level Agreement that could affect the principal contracts’ financial aspects. You will have to be specific with any probable exclusions to your SLA contract and the related costs as well. Your SLA should contain a remedial approach and compensation plan if the service supplied falls short of the desired level of service quality to encourage the provider to deliver better service.
8. Provide any essential Annexure
An SLA may occasionally include words or details that are particular to a sector or business. When you will follow the procedure to write a Service Level Agreement, you may add suitable definitions of these words in your appendix. In some cases, businesses utilize an annexure to specify price ranges where the Service Level Agreements’ financial specifics differ from what was specified in the agreement.
9. Amend your work
After following the procedure to write a Service Level Agreement, when you are done drafting your Service Level Agreement contract, it’s crucial to check it over for any content you want to add or modify as well as for clarity. If you have created the agreement, ensure that your SLA does not have any errors. You can evaluate and modify the service levels till the validity of your agreement if required. Writing your agreement technically right will demonstrate your competence and credibility.
10. Obtain necessary approvals
Since the main objective of an SLA is to establish a contract between a client and a service provider, it is necessary to complete the procedure to write a Service Level Agreement by getting the concerned parties’ consent.
A service level agreement is an essential contract that both the supplier and the customer require. For a consumer, it acts as evidence of the supplier’s ability to offer great service. This document is crucial for the provider in maintaining client requirements at the same time. By following the steps in the article, you can create a successful SLA that promotes trust, enabling a win-win situation built on openness and specific parameters.
You can also speak with experts from OnDemand International if you wish to create a service-level agreement. We would assist you in creating an agreement by carefully evaluation all the conditions of the client as well as the producer.
A Service Level Agreement’s main components are agreement objectives, service descriptions, quality of service, payment conditions, and termination circumstances.
Yes. A Master Service Agreement (or MSA) is a standard contract between two parties that specifies the terms that will govern all future transactions or agreements. A Service Level Agreement (SLA), on the other hand, is a contract between a service provider and a service user.
The three different kinds of Service Level Agreements are-
- Customer Service Level Agreement
- Internal Service Level Agreement
- Multi-level Service Level Agreement
Yes, an SLA may be changed by mutual consent, particularly if there are adjustments to business requirements, technological advancements, or legal requirements.
An SLA offers precise instructions, reduces misunderstandings, boosts communication, and raises the general level of service quality.
There should be measures for sanctions, compensation, or even termination as a last resort if one party repeatedly fails to meet SLA obligations.