What Is A Service Level Agreement Used For

In a service level agreement, it is possible to include financial incentives for exceeding targets and penalties for non-compliance with a certain level of service. As a rule, telecommunications services are defined with penalties for the provider if they are outside the measures agreed by the SLA. Service Performance – Performance measures and levels for performance measurement are defined. The customer and service provider must agree on a list of all the metrics they use to measure the provider`s service levels. Among other things, service level agreements build trust within and between organizations – and clarify what needs to be done at which standard and when. If your service provider doesn`t meet their obligations, it can have a significant impact on your company`s reputation and bottom line. In your SLA, you should include the consequences if performance standards are not met….