What is SLA?

Service-Level Agreement (SLA) is a business contract with a customer which states that both parties have agreed to a certain transaction. The SLA regulates what services must be fulfilled by the provider/vendor along with the service standards. SLA is the basis for both parties in determining what kind of services the vendor must provide, which consumers can get.

Types of SLA:

There are 3 types of SLAs that can be tailored to the needs of consumers.

  1. Customer Based SLA; is a type of agreement based on who the customer and what their business is. This contract contains details regarding the type and quality of services that can be provided to these consumers.
  2. Service-Based SLA; is a type of business agreement/contract that only covers the same type of service for all customers.
  3. Multi-Level SLA; is an agreement customized to customer needs by considering 3 levels (company, consumer, and service provided)

Timedoor Tips:

Keep it in mind when you want to create an SLA:

  1. Service Description. Explain clearly, what services will be bound in the contract.
  2. Duration/Term of Service. The SLA must explain when the service is accessible to your customers.
  3. Provider Response. The SLA governs how quickly the service provider can deliver to the customer.
  4. Reporting Procedures. If there is a problem, how is the reporting procedure? Who should be contacted by the customers
  5. Work Development. The SLA regulates the procedures and who is obliged to report the progress of the vendor’s work.
  6. Consequences. What are the consequences if one or both parties fail to fulfil their obligations as previously stipulated?
  7. Work constraints. The SLA should contain any conditions that can still be tolerated by your consumers. The more detailed an SLA is, the services provided are expected to match consumer expectations.


Find below the explanation about SLA: