Service Level Agreement (SLA)

Definition of Service Level Agreement (SLA)

A contract that defines the level of service expected between a provider and a customer.

Explanation of Service Level Agreement (SLA)

A Service Level Agreement (SLA) is a formal contract between a service provider and a customer that outlines the expected level of service, performance metrics, and responsibilities of both parties. It specifies key performance indicators (KPIs), such as uptime, response time, and resolution time, as well as penalties for failing to meet these standards. For example, an IT service provider might agree to an SLA that guarantees 99.9% system uptime and a response time of 30 minutes for critical issues. SLAs are essential for setting clear expectations, ensuring accountability, and maintaining customer satisfaction. They help define the quality of service, provide a basis for measuring performance, and establish a framework for resolving disputes. By clearly outlining the terms and conditions of service delivery, SLAs protect both the provider and the customer, fostering a mutually beneficial relationship.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.