Service Level Agreements, also known as SLAs, are service-based commitments between a service provider, or Information Technology Server, and the client, or party procuring the technology. Service Level Agreements are a critical component in ensuring that the information technology services are smooth, seamless transactions. Service Level Agreements, however, need to have a series of critical elements in order to be efficient. Here, we will discuss a few of these elements.

The Key Components of a Service Level Agreement

For companies and clients alike, ensuring that a concise SLA is obtained is critical to a smooth operation and support. SLAs will ultimately help to identify each party’s expectations, facilitate communication between each party involved, and clarify each party’s responsibilities.

In effort of developing a well-organized SLA, the following elements should be considered:

1. Agreement Overview – Agreement overviews will include details such as the names of those involved, the start date and end date of the contract, and a brief overview on what the Service Level Agreement will include.
2. Goals and Objectives of the Agreement – This section will cover the main purpose of the SLA, which includes the ability to sustain a mutual agreement. This generally divides service claims based upon their level of severity, minor, moderate and critical for example might be one good way to divide the claims. SLAs may limit the hours of operation, or they may be 24 x 7. Typically the claim by classification has a response time and an average repair time. Often SLA also stipulate a service credit remedy.
3. Stakeholders – Here, the parties involved in the SLA will be outlined. While the impact of the SLA is broad, often enterprise-wide, it is good practice to coordinate the communications through a designated representative at the customer site, so that the customer can develop improved internal operational familiarity and the vendor is not just repeating the same advice, on the same issue to a different person; i.e. so that you can progress forward (remember most support issues involve some portion of operator error, coordinated response can help eliminate or reduce that element over time).
4. Service Terms and Costs – It is important to have a mention of a periodic evaluation in the Service Level Agreement. It is important to have an outline of the effective date as well as the date of expiration for the services. As stated above, many SLA include the concept of a Service Credit remedy, so that if the vendor falls below the SLA a service credit might be provided to the customer based upon that breach.
5. Service Agreement and Description of Services – One of the largest sections of a Service Legal Agreement is the service agreement, where key components of the service provider responsibilities are outlined. The following topics should be included: Scope of service – which indicates specific services that are offered, Definition of SLA exclusions – such as scheduled maintenance, Client requirements – This can indicate details on the payments that are agreed upon, Service provider requirements – This section will attempt to clarify areas such as response times of service related incidents, Technical service support, and the frequency of that report, Service level response and average repair time targets
6. Penalties or Remedies – An effective SLA will also include a plan to address penalties or remedies that relate to non-performance and under-performance by a service provider.  Many SLAs offer Service Credit remedies, the remedies are generally triggered by multiple consecutive months of failed SLA response, the credits are based upon the magnitude of the missed SLA, and in some cases if the SLA is not reached in some number of months, like 4 out of 6 consecutive months, the customer is given the right to terminate the SLA and associated SaaS or term license with a refund for the unused portion of the term.

Different Types of IT Services to Include in an SLA

A single Service Level Agreement can cover multiple information technology services. The following is a brief list of IT services that may be included in an agreement.

• Desktop support
• Phone connection
• Firewall services
• Server management
• Server backup
• Electronic time card management solutions
• Data connection

To Protect Your Interests in a Service Level Agreement, Seek the Support of a Skilled Attorney

If you need assistance in reviewing or writing a Service Level Agreement, you should consider seeking the legal support of a qualified attorney. While you can find decent templates online, a skilled attorney will tailor the SLA to your needs and interests.

Attorney John P. O’Brien is a highly skilled technology attorney in the field of Service Level Agreements. Whether you are the service provider or IT services client, consider contacting the firm today for a free case evaluation.