Why Is It Important To Have A Service Level Agreement

In subscription-based contracts, the penalty a provider typically incurs is returning a percentage of the monthly subscription. When outsourcing software development, an SLA penalty is often the loss of a “bonus payment” (or percentage) held in reserve by the client for a successfully completed project with all SLAs in reserve. Depending on the service, the types of measures to be monitored may include: This section describes what is considered normal service availability. The name of the service is available, add a percentage of the time from the insertion of normal operating hours, including hours and days of the week. Any single failure that exceeds the insertion period, or the sum of the failures that exceed the insertion period per month, constitutes a violation. A service level agreement (SLA) is an obligation between a service provider and a customer. Particular aspects of the service – quality, availability, responsibilities – are agreed between the service provider and the user of the service. The most common element of an SLA is that the services must be provided to the customer as contractually agreed. For example, Internet service providers and telecommunications companies typically include service level agreements in the terms of their contracts with customers to define the level(s) of service sold in plain language. In order to effectively meet the response times described in an SLA, there must also be a very good structure for the help desk. Tickets must be shipped on time as soon as they arrive, technicians are assigned and the work is complete. This requires structure and care on the part of your employees.

It also requires that you have enough employees for you to reliably achieve these SLAs, even at peak times when things are busy. Choose measures that motivate good behavior. The first objective of each metric is to motivate the appropriate behavior on behalf of the customer and the service provider. Each side of the relationship will try to optimize its actions to achieve the performance objectives defined by the metrics. First, focus on the behavior you want to motivate. Then, test your metrics by putting yourself in the place on the other side. How would you optimize your performance? Does this optimization support the desired results? However, there are several elements of an SLA that are consistent across all sectors and especially in the customer service industry. The following section provides an example template for an SLA to display all the important components to be addressed in such a document. Second, when expectations for quality of service and SCO are clear, there is no room for providers to avoid liability for poor performance. Sprint time (duration) – Teams using Agile have sprints measured in days instead of months to work in “phases” or “activities” using traditional development methods. Track the duration of your sprints and evaluate trends over time. You will be surprised at what you learn! Define an appropriate baseline.

Defining the right metrics is only half the battle. To be useful, metrics must be set to a reasonable and achievable level of performance. .