What does a service level agreement (SLA) outline?

A service level agreement (SLA) is fundamentally a contract that defines the expected level of service that a provider must deliver to a customer. This agreement outlines the specific metrics by which the service will be measured, such as response times, availability, and quality standards. The purpose of an SLA is to set clear expectations, ensure accountability, and facilitate conflict resolution if the agreed service levels are not met. It helps both parties understand their responsibilities and the performance criteria that will be used to evaluate service delivery.

While financial projections, employee performance standards, and hiring criteria are important elements of business operations, they do not pertain directly to the outlined purpose of a service level agreement. SLAs focus specifically on the relationship between service providers and their customers, ensuring that both sides have a mutual understanding of what is to be delivered and maintaining service quality standards.