What are the Types of Service Level Agreement (SLA)?

Last Updated at: Sep 30, 2020
What Are The Types Of Service Level Agreement (SLA)
The Types Of Service Level Agreement

Computer Weekly has recently reported that the COVID-19 outbreak has affected many new deals and contract renewals across the Indian IT industry. Hence, IT suppliers have asked their clients to relax MSAs and SLAs to enable remote service delivery in an extensive manner.


In case you have cracked an ITIL (Information Technology Infrastructure Library) Training you would not need to ask what service level agreement (SLA) is. In any case, on the off chance that you have not completed an ITIL online course yet, we will help you out. An SLA is an agreement between an IT Service provider and a consumer.

If you have cleared ITIL Training (Information Technology Infrastructure Library) Training, you will not ask about service level agreement (Service Level Agreement). This is an agreement made between a consumer and an IT service provider. There are three different types of SLA and it is important to know these in detail before drafting the agreement.

For example, you are a consumer of a bank and the bank gives services to you. An SLA among you and the bank depicts the services provided and the service levels at which they will be given. For instance, the bank will enable you to withdraw cash from an ATM and the transaction will last no longer than 10 seconds. That is a case of an SLA and it is a section of service level administration.

There are three types of SLA that can be filed. Before explaining ITIL service level necessities and concurring on the service levels through SLA, the most suitable SLA structure must be planned. Depending upon the administrations that will be given to a client or business, an SLA structure is planned that fits the reason. SLAs are generally marked amid the ITIL service configuration phase of the ITIL lifecycle.

Service level SLA

The principal sort of SLA structure is the service based SLA. An administration based SLA covers one service for all clients. Let’s believe that the IT specialist organisation provides client question administration to numerous clients. In a service based SLA, the service level of the consumer query service will be the same for all clients that will utilise this administration.

For example, if the account division and the HR office are two clients that will utilise this administration, same SLA will be legitimate between the IT service provider and these two offices since it is an administration based SLA.

Get Your Legal Documents Prepared by Experts

Client based SLA

The second sort of SLA structure is the client based SLA. A client based SLA is concurrence with one client, covering every one of the administrations utilised by this client. Let us think about the connection between you and your telecom administrator. You utilise the voice service, SMS administrations, date service, and a few different administrations of the telecom service. For every one of these administrations, you have just one contract among you and the telecom administrator. Likewise, if the IT specialist co-op gives a few administrations to the business and the clients, and if all the service levels are archived in one SLA for the provided administrations, it will be a client based SLA.

Multi-level SLA

The third and the last kind of service level agreement is the multi-level SLA. In multi-level SLA, parts of SLA are characterised by the association of the client utilising some sort of legacy within general definitions with pertinence for every single subordinate dimension. This SLA centres on the association of the client. All administrations and their inter-relationships with subordinate administrations are utilised when characterising the multi-level administration level agreement structure.

Sustaining service level agreements are a piece of SL management. Each time an administration change, or the administration level focus of an administration change, the service level agreement should be checked on and modified. The new SLA needs to mirror the progressions made to the administration or the administration level targets. In this way, the administration of service level agreement is a significant piece of ITIL interminable administration improvement.

Why it’s vital to have an SLA?

Without service level agreement, it is not clear what will occur on the off chance that one of the parties does not hold up to their end of the deal. For instance, we should think about that a telecom supplier’s service level target is to answer all assistance work area calls within 5 seconds, and the calls are just being replied in 5 minutes. They can without much of a stretch say that they never guaranteed that the calls will be replied in 5 seconds if there was no SLA set up. Having a service level agreement takes into account precision about what the administration level targets are just as what occurs if the required targets are not met. With an SLA set up, the two parties are ensured.

The primary segments of an SLA

A service level agreement states what the two parties need to accomplish with their understanding alongside a layout of the duties of each party incorporating expected productivity with performance measures. A service level agreement, as a rule, has a term period that is indicated in the agreement. Every single service that is incorporated into the agreement is depicted and can likewise contain insights about systems for checking the exhibition of the services and also as crisis-management processes.

Method to set metrics in an SLA

SLA incorporates measurements by which the service supplier’s execution of their administrations is estimated. It very well may be hard to effectively select metrics that are reasonable for the two parties. It is significant that the measurements are within the service provider’s power. In case the service provider cannot control whether the metric performs within the required measurement, at that point, it is out of line to consider them responsible for the metric.

Ultimately, it is essential to indicate a benchmark for the measurements in the SLA. This benchmark must be sensible, yet can be taken care of amid an audit of the SLA when more information on that measurement has been accumulated.

Service level agreements are the initial phase in building a connection between a specialist organization and a client. By being clear about what is normal from each party, there can be transparency and confidence on the two sides. Despite which sort of SLA is signed, each party would now be able to be considered responsible to keep up their end of the deal. At times it is important to bargain if the service provider does not have the assets to agree to the client’s prerequisites. In such a case, the client may need to re-examine their prerequisites and the service provider may need to put resources into more assets. Such trade offs set up a decent working connection between the service provider and the client.