A service level agreement (SLA) is a contract between a service provider and a client that defines the level of service expected from the service provider. Developing a thorough SLA is crucial for clearly outlining expectations around things like uptime, response times, ticket resolutions, security protocols and support channels. This helps ensure high quality service for the client and protects the service provider from unclear or unreasonable demands.
When writing an SLA, it is important to include the proper structure and level of detail. The following sections should be addressed in a comprehensive SLA:
Introduction
The introduction section provides an overview of the SLA’s purpose and scope. It identifies both parties involved in the agreement, including contact details. Make sure to clearly state the start and end date that the SLA will be in effect.
Service Coverage and Description
This section defines the specific services that are covered under the agreement. Provide detailed descriptions of each service to eliminate ambiguity. Some examples of services covered could include:
Web hosting
Database management
Software maintenance
Help desk support
Server maintenance & monitoring
Backup & disaster recovery
Security services
Service Hours & Availability
Define the service hours for things like help desk support, scheduled maintenance windows, backup windows, etc. Also detail the uptime percentage commitment for each critical service. For example, you may commit to 99.5% uptime for web hosting and 99.9% for critical database services.
Performance Standards
Set clear, measurable performance standards around key areas like response times, resolution times, and completion of specific tasks. These could include things such as:
Help ticket response time within 30 minutes
P1 outage resolved within 1 hour
Software updates tested and deployed monthly
Backup completion windows
Roles & Responsibilities
Clearly outline the roles and specific responsibilities of both parties. Define what service provider will provide and what client is responsible for, such as providing adequate login credentials or adhering to security protocols.
Service Level Objectives
Tie performance metrics to service level objectives (SLOs) that state the incentive/disincentive if standards are not met. For example, if uptime for critical services drops below 99%, monthly service fees may be discounted by 10% for each additional hour of downtime.
Service Exclusions
Define what is specifically excluded from the agreement such as events outside of provider control like natural disasters or DDoS attacks. Also exclude services like professional services work or custom development.
Reporting & Review
Require routine service performance reporting by provider. Define report recipients, frequency (monthly/quarterly), and required data elements. Also schedule recurring review meetings to evaluate SLA and identify areas for improvement.
Escalation Procedures
Provide a detailed escalation process including contacts, time frames, and mechanisms to address ongoing or severe issues not being adequately resolved according to the agreement.
Business Continuity Management
Require provider to have adequate business continuity and disaster recovery plans and testing in place to recover services according to agreed RTO/RPOs. Specify client participation in DR testing as required.
Acceptance of Terms
Include signature blocks for authorized representatives of both provider and client to legally accept terms of the SLA.
Data Privacy & Security
State provider will protect any customer data under relevant legislation and industry best practices. Require data encryption, access controls, logging, backups, incident response plans and timely breach notification as applicable.
Invoice & Payment Terms
Define frequency and deadline for provider invoices as well as payment terms and any applicable late fees for the client.
Contract Management
Specify process for managing contract renewals, exits or conflict resolution if needed including advance notification periods required. Require annual SLA reviews to ensure it stays up to date and relevant.
By including thorough, measurable details around all key areas of the service relationship as outlined above, an SLA helps set the proper expectations on both sides and ensures a minimum standard of service quality is delivered and maintained throughout the contract period. With service quality and reliability top of mind for most businesses, a well-written SLA protects both provider and client interests and solidifies a true partnership for success.