The Four Different Aspects of Service Level Agreements (SLAs)

Confused about Service Level Agreement? Well, you are at the right place. In this article, we have tried to cover all the major aspects of Service Level Agreements.

Introduction 

Companies need to communicate with the customers so they can help to clear out the misconception and ambiguity among them. One such way is service level agreements. Companies often use service level agreements to communicate with their customers to explain the services offered by them, the different terms and conditions applicable, etc.  The Four Different Aspects Of Service Level Agreements(Slas)

Vakilsearch is one such platform that can help you draft quality SLAs within 3 easy steps.

1. Book an appointment with an  Legal expert
2. Provide all the required documents To get your query cleared, you just have to connect with Vakilsearch experts via call. 
3. You can get your SLAs registered within a few clicks and complete the process without any hassles. 

But before understanding the different aspects of service level agreements, we need to understand what SLA are and for what are they used.

What are Service Level Agreements? 

Service level agreements are agreements between a service provider or a company and its customers. It specifies the quality and the amount of service a customer can get from the company or the vendor. 

Types of Service-Level Agreements 

There are three types of SLAs – 

1. Customer Service Level Agreement: This is the most basic type of SLA. It is the agreement between the vendor and the customer. It is used to make the customers aware of the services to be provided by the vendor. 
2. Internal Service Level Agreement: This is the SLA between the different departments of the company. It helps to establish proper coordination between the different departments and ensures that everything functions smoothly.
3. Multilevel Service Level Agreement: In simple words, Multiple SLAs are used to highlight the terms and conditions applicable to the different services provided by the company. As the name says, it includes multiple service levels, each service with its own set of conditions and different target audiences. 

What are the Different Components of Service Level Agreements? 

1. Agreement Overview 

The first and most important part of an SLA. most of the customers aren’t going to read the whole agreement, instead, they are most likely to refer to the overview of the agreement. The overview of the agreement includes the fundamental points of the SLA, the date of launch, the parties involved in the SLA, etc. 

2. Service List 

As we are preparing the Service Level Agreement to outline the services to be provided, this section becomes one of the most important sections in the SLA. it includes the list of services to be given under different conditions, their expected delivery period (if any), the life expectancy of the service/product, the quality of the services, etc.

3. Security 

This section includes the security provisions to be enacted for both parties under different conditions. 

4. Cancellation provision 

If due to some unavoidable circumstances like the end date has been reached, either party desires to end the service level agreement, the conditions and consequences are defined under this section. 

5. The Contact List

The SLA should include the list of contacts of the people who are in charge of providing the services, to avoid any kind of miscommunication. 

6.Signatures 

Last but not least, the SLA should end with the signatures of the stakeholders and all the parties involved in the agreement to prove their accord with every detail in the SLA. 

What are the Uses of Service Level agreements?

1. Service Level Agreements are mainly used to establish an effective connection between the vendor and the customers. It helps the vendor to better understand the market and helps them design their products accordingly. 
2. They help the vendor decide on a set of standards for maintaining the quality of their services or products. This benefits both company and the customers. 
3. They help to make space for complaints and feedback when there is a drop in the quality standards of the service/products. This helps the company to improve and learn from its mistakes. 

What is the Importance of SLA?

1. Helps to improve customer experience with your company.
2. Makes communication between consumers and vendors more precise and clearer
3. Helps to better analyze the market and allows the company to focus on important things which further helps to boost employee morale. 

How to Draft a Service-Level Agreement?

1. The first thing to keep in mind while drafting an SLA is to stick to reality. As said before, SLA is an agreement between you and your customers, so you need to be realistic with your customers to win their trust. Avoid unnecessary jargon and make use of statements that seem achievable.
2. Keep it simple. The language used in the SLA should be easy to read and understand. This will help to portray a clear picture of your vision in your customer’s minds.  It should clearly state the services that your company will provide as they will be tested and checked by the consumers and thus will help to indulge a feeling of trust among them. 
3. Don’t forget to include the compensation provision, also known as the indemnification clause in the SLA. because if due for some reason, your company fails to perform on the promises, the vendor should provide any legal costs or damages or provide proper compensation to the customer.  The scope of this indemnification clause completely lies with the service provider. 
4. Be specific with the metrics. Even though you might have mentioned the different services to be provided and the set of terms and conditions associated with them, it is also important to mention how the execution of the services will be measured through metrics like the availability of the service and downtime, quality of the service, etc. 

Conclusion

Service level agreements is used for the good option for vendors to convey their services and conditions to their customers in an effective manner. A poorly drafted SLA can result in the inverse of the expected results. Though there is almost no judicial process involved in drafting an SLA, sometimes SLAs can lead companies to the legal doorstep. So, it’s always better to have a legal guide to avoid such circumstances. 

Vakilsearch with years of expertise in the field can help you draft your perfect SLA. With an in-house team of experts with in-depth knowledge of the field, Vakilsearch tries to provide you with the best legal experience and helps to ease the process. 

Read more,

• How to Write a SLA
• Best Practices for Service Level Agreement
• Importance of SLA in the Customer Service Industry