The agreement sets service metrics that measure the number of corrected incidents within 4 hours. (It may also be good to display the average resolution time.) Penalty – This is the penalty for non-compliance with the obligations of the ALS component (“sla injury”). In subscription-based agreements, the penalty a creditor normally receives will usually be to recover a percentage of the monthly subscription. In software development outsourcing – a PENALTY is often considered the loss of a “bonus” (or percentage) in reserve by the client for a successful project with all SLAs. As far as the monthly evaluation of clients is concerned, the interview is about the same: this month, 98% of incidents were resolved within the ALS target, with an average resolution of 3 hours (compared to 3.5 hours last month). Well inside the target; Excellent service! What measures do you expect in a periodic report? Companies that use agile development methods are able to use new techniques to estimate complexity and effort. Here are some metrics we recommend: Wikipedia defines a Service Level Agreement (SLA) as an “official obligation that prevails between a service provider and a customer. Specific aspects of the service – quality, availability, responsibilities – are agreed between the service provider and the user of the service. In my experience, I have always viewed alS as a contractual agreement for services, with penalties or repairs if these services are not provided under the agreed terms of service. Imagine my surprise when I saw (during a presentation at Tech Field Day) that IBM uses the term SLA directive in its backup software. What exactly is the type of relationship between the service provider and the customer? The ALS should contain not only a description of the services to be provided and their expected levels of service, but also metrics to measure the services, obligations and responsibilities of each party, corrective measures or penalties in the event of a breach, and a protocol for adding and removing measures. This is the basis of a Service Level Agreement (SLA).

Keep reading about why you need ALS to get a good service. Service level agreements define the obligations of service providers to their customers.