Legal AdviceService Level Agreement

Right Ways To Select Metrics For My SLA

SLA is an integral part of an agreement and must be clarified. Here is a simple guide to help you choose the right ways to select for ahead to know everything about SLA management.

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While selecting metrics for your SLA, make sure that the metrics are based on things that the service provider can control. SLA metrics should be based on things that the outsourcers can control.SLAs are an important part of any outsourcing or technology vendor contract. 

An SLA doesn’t just say what kind of service and how well it should be done; it also says what to do if those things aren’t done. You can correctly select metrics for SLA if you know when to choose metrics for your SLA

What is a Service Level Agreement (SLA)

An SLA is an agreement between two or more people about how to do something.

In a service level agreement, the customer and the supplier agree on the level of service that the supplier should provide. 

The SLA also describes how the service is measured and what happens if it doesn’t meet the agreed-upon standards. Most of the time, SLAs are between businesses and outside suppliers, but they can also be between two departments in the same company.

The SLA of a telecom company, for example, may say that the network will be available 99.999% of the time. This works out to about five and a half minutes of downtime per year, which can still be too long for some businesses. If that doesn’t happen, the customer can cut back on their payment by a certain percentage, which is usually based on the severity of the breach.

When to Choose Metrics for Your SLA

  • The goal should be to make sure that best practices and rules are used in an equitable way that will keep the service working and keep costs down
  • Make sure that the metrics are based on things that the service provider can control. To get people to do the right thing, Service Level Agreement metrics should show things that the outsourcer can control 
  • When a customer doesn’t do what they say they will do, it’s common to punish the service provider. Clients should not hold service providers to a delivery date if they don’t give the service provider the change specifications for the application code for a few weeks 
  • Making the SLA two-sided by measuring the client’s performance on actions that are linked together is a good way to keep your eye on the goal.

Reasons You Need an SLA

  • SLAs are an integral part of a contract with an IT company. An SLA is a single document that includes information about all of the services that have been paid for and their agreed-upon reliability. It does this by putting all of this information together 
  • They write down metrics, responsibilities, and expectations so that neither party can say that they didn’t know about the service. It makes sure that both sides have the same idea of what they need
  • Any major contract that doesn’t have a Service Level Agreement (SLA) that has been reviewed by legal counsel is open to misinterpretation. The SLA agreement protects both of the people who signed the agreement.

Provision of SLA

  • Most service providers have standard service level agreements (SLAs) that can be used as a starting point for negotiations. These agreements show different levels of service at different prices, and they can be used as a starting point for negotiations 
  • These should be checked out by the customer and their lawyer, though, because they are usually written in favour of the supplier
  • When a customer sends out an RFP, they should include their expectations for service levels in the request. This will affect the supplier’s offerings and pricing, and it may even make the supplier decide to respond. 

For example, if you want a system to be available 99.99% of the time, but the supplier can’t meet your needs with the design you’ve chosen, it might come up with a more robust solution.

Content of an SLA

As part of the SLA service level agreement, each party should know what services they’re going to be providing, how they’re going to be measured, how they’re going to be punished if they don’t meet their promises, and how they can add or remove metrics.

It is important to make sure that metrics are set up, so bad behavior by either party doesn’t get them points. Service level goals should not be broken if clients don’t give enough information in a timely way. Suppliers should not be punished for this.


What are the Main Parts of an SLA

The SLA should have parts in two areas: SLA services and SLA management.

  • If there’s a question about what services will be provided and what isn’t, these are called service elements. They include things like the specifics of what services will be provided (and what isn’t, if there’s room for doubt), the conditions under which services will be available, and the standards for each level of service (prime time and non-prime time, for example)
  • It’s important to have clear definitions of how to measure service levels, how often to report, how disputes should be resolved, and how the agreement can be changed. This should already be in the contract, but it’s important to have a way to change the agreement if necessary
  • This last thing is very important. Service needs and vendor capabilities change, so there must be a way to make sure the SLA is always up to date.

Clause: Meaning of Indemnification  

If the service provider doesn’t keep its promises, the customer company can sue them for damages. This clause is very important. When a provider breaks a promise, it will have to pay the customer’s legal fees if they go to court with someone else. This is called “indemnification.” 

If you use a standard SLA agreement from the service provider, this provision is likely to be missing. You can ask your in-house lawyer to write a simple provision to include it, but the service provider may want to talk about this further.

Can an SLA be Changed

This could happen if another company bought the service provider. The customer might think that the service provider would keep its SLA, but this might not be the case. 

The agreement may have to be changed. Remember that the new owner may not want to lose any current customers and so may keep the SLAs that were in place when the company was bought out.

How Can I Check the Service Levels

  • Most service providers make statistics available, and they usually do this through a web portal that you can use. Then, customers can check to see if service level agreements are being met and if they’re getting service credits or other penalties as set out in the SLA
  • Usually, the outsourcing company picks these processes and methods. This way, the outsourcing company can make sure that these processes and methods can support the SLA agreement. As a result, it’s important to work with both the client and the outsourcing company to make sure there aren’t any misunderstandings about the process and method of support
  • Customers, on the other hand, should spend money on third-party tools that automatically record SLA performance data, which gives an objective measure of how well a service is working.

What Kind of Data should be Kept in Track 

  • The types of SLA metrics that will be used will depend on the services that are being done. There are many things that can be monitored as part of an SLA service level agreement, but the scheme should be kept as simple as possible to avoid both confusion and too much money on both sides
  • In choosing metrics, look at your business and figure out what is most important. The more complicated the monitoring (and related remedy) scheme is, the less likely it is to work because no one will have time to properly look at the data. Because it is unlikely that costly manual data collection will be accurate, automated systems are the best choice when there is a question about how easy it is to get data.

Types of Metrics Based on Service 

How long service can be used: how long it can be used When it comes to availability, it can be broken down by time slot. 

For example, 99.5% availability must be met between 8 am, and 6 pm, and more or less availability must be met at other times, like at night. E-commerce businesses usually have very strict service level agreements (SLAs) at all times. A site that makes millions of dollars an hour usually needs 99.999% uptime.

  • The number or percentage of mistakes in the most important work. Production failures, like not having enough backups and restores, coding mistakes, and missed deadlines, could fall into this category
  • Commercial analysis tools are used to measure technical quality in outsourced application development, and these tools look at things like the size of the program and the number of coding errors
  • A security breach can be costly in these highly regulated times– Application and network security breaches can cost money; antivirus updates and patching are two things that can be measured to show that all reasonable security measures were taken in the event of an attack
  • IT customers want to include business process metrics in their SLA service level agreement more and more– As long as the vendor’s contribution to the KPIs can be calculated, this is usually the best way to go.

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