SLA Management

An SLA stands for Service Level Agreement. ITIL4 defines SLA as "A documented agreement between a service provider and a customer that defines both the services required and the expected level of service." SLA is a detailed document that defines the standards of services the customer expects from the service provider. SLAs differ across services, vendors, and industries. It is an integral part of a vendor contract because it lists the services agreed upon between the parties and the quality, availability, remedies, and penalties.

In Infraon, the "SLA" module is an SLA-capturing tool. It is not yet implemented as a full-fledged SLA Management tool. It allows the definition of SLA metrics and service details.

Benefits of SLA:

• Sets clear guidelines and expectations - An SLA sets clear guidelines regarding expectations and commitments.

• Improved customer service - Because of the existence of an SLA between two parties, the service provider monitors and measures whether the terms of the service are being met. Thus, the team works efficiently to achieve the deadlines. There will be a decrease in ticket response time, which will improve customer service.

• Peace of Mind - An SLA gives customers peace of mind because they have a contract they can refer to in case their demands are unmet.

• Strengthens Customer Relationships - The above-mentioned benefits enable a strong relationship between the service provider and the customer.

Two Essential Components of an SLA

The two essential components of an SLA are Metrics and Penalties.

Metrics - Metrics are the criteria for measuring services. It is an agreed-upon measurable target between the customer and the service provider. Metrics make it easier to spot SLA breaches.

Penalty - Penalty is a disciplinary measure to be followed if the SLA is breached. A penalty could be imposed for monetary refunds, service credits, etc. These terms are captured in an SLA.