SLA is a formal agreement between a service provider and a client that defines expected service standards. It includes performance metrics such as uptime, response time, and quality benchmarks. SLAs ensure accountability and set clear expectations. They are commonly used in IT services, cloud computing, and outsourcing. If service levels are not met, penalties or corrective actions may apply. SLAs help maintain trust and transparency in business relationships.
Aspect
Example
Term
SLA (Service Level Agreement)
Purpose
Defines the expected level of service between a service provider and customer
Parties Involved
Company and Service Provider
Service Example
IT support service
Response Time Commitment
Support tickets answered within 2 hours
Resolution Time Commitment
Critical issues fixed within 24 hours
Result
Both parties understand service expectations and responsibilities