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SLA


What is the fullform of SLA?  

An SLA is a service level agreement. It tells you about the service you can expect from the service provider. It is an important part of the service provider's contract that consists of solutions, penalties, and metrics that should be measured, agreed upon, and achieved by the vendor.

What are the 3 types of SLA?


Corporate level:

A corporate-level SLA is a Service level agreement that consists of all issues that are relevant and of the same level throughout the organization.

For example, an SLA that deals with the security of the organization would state that all employees should have a password of at least 9 characters which needs to be changed every 45 days, or that every employee should have a photo Id access card on them at all times.  


Customer level:

Customer level SLA’s are those service level agreements that deal with issues which are specific to a particular customer's needs.

Within the organization, certain requirements like the level of security, vary from department to department. For e.g., Due to the handling of financial resources, the finance department will need higher security measures in place.  

Service Level:

Service-level SLA’s are those service level agreements that are covered for all issues revolving around a specific customer service.  

It has the same level of SLA for all customers who apply for the same service. For example, everyone who uses a specific IP telephony provider can avail of the same IT support services  

What is an example of SLA?

Let’s say you are an account holder in a large bank and you expect a certain level of service from your bank. The bank will state the services and the level in the service level agreement made between you and the bank. For example, the bank will allow you to withdraw a certain amount of money each day from the ATM and will try to ensure that the transaction will be a maximum of 15 seconds. This is an example of an SLA that is at the service level.


What is a Key Performance Indicator (KPI)?

A Key performance indicator or KPI is the way a company can measure its projects, units, and people. It helps companies understand how close they are to achieving their strategic goals. It’s an effective tool that helps companies and their leaders monitor progress, analyze it, and make necessary changes to correct it in case the company goes off pace in achieving their goals.  

Key Performance Indicators act as a navigational tool that can highlight certain areas of the company's processes that might need to change in order to achieve the defined strategic goals.  For e.g., A physician can assess important metrics about the patient prior to recommending medicines, similarly, leaders can give critical information required to achieve the strategic goals simply by monitoring the KPIs of the organization.  

SLA vs KPI?

KPI’s can be used as a part of SLA’s to measure the success of the defined SLA’s. The key difference between SLA's and KPI’s is that SLA’s give an outline of the service agreements between vendors and customers, while KPI’s are used to measure and monitor the company's strategic goals.

How SLA is calculated?

SLA is calculated as for a specific filter, of a specific report, within a predefined time period, as the percentage of tickets raised where first-level responses were sent within the given SLA upon the total number of tickets raised.  


What is SLA time?    

An SLA response time is considered as the time an agent will take to respond to a particular query that is raised via the multiple channels provided by the service provider. Vendors and customers have to clearly define the number of working hours and ensure that only the predefined working hours are included when calculating the response time.

Why is SLA important?    

An SLA is considered an important document because it clearly outlines and sets expectations for the service that is going to be provided by the vendor. A good SLA that is well-defined also increases the chance of improving customer satisfaction. Finally, a good SLA helps companies set a level of performance that can be measured and monitored.

Is SLA a contract?

An SLA is an important part of a contract that is entered by the vendor and customer which clearly states the level and standard of the services that are going to be provided by the vendor.

What kind of metrics should be monitored?  

The types of SLA metrics that are needed can rely upon the services being provided to the customer. Several things are monitored as part of an associate SLA, however, the theme ought to be as unbroken and straightforward as attainable, so that confusion can be avoided and also excessive costs on either end. While selecting metrics, examine your operation, and judge what's most significant for you. The more advanced metrics you use, the less probability it has in being effective since nobody can have enough time to properly analyze the information. If you are unsure, choose simply an assortment of metric data and automatic systems area units that are best suited to your company, since it's unlikely that expensive manual assortment of metrics is reliable in this scenario.

Which category of metrics should companies use for service level agreements?


1. Service availability:

It represents the quantity of your time the service is accessible for and can be used. This could be measured by a slot, for example, 99.5% handiness is needed between the hours of 8 a.m. and 6 p.m., and additional or less handiness given throughout alternative times. E-commerce operations generally have extraordinarily aggressive SLAs at almost all times; 99.9% of times could be a common demand for a website that generates variant bucks per associate hour.

2. Rate of defects:

Percentages of errors in an important goal/deliverable. Production failures like incomplete backups and restores, secret writing errors/rework, and lost deadlines are also enclosed within the agreement.  

3. Technical quality:

In an outsourced application, development activity of technical quality by industrial analysis tools that examine factors like program size and secret writing defects.

4. Security:

In these hyper-regulated times, application and network security breaches are expensive. Manageable security measures like anti-virus updates and fixtures are essential in providing affordable preventive measures in the event of an occurrence.  

5. Business results:

More and more IT customers would love to include business method metrics into their SLA’s. Existing key performance indicators can be used as an effective approach as long as the vendor’s contribution to those KPIs are calculated.  

How to make an SLA for multiple service providers?

Customers will produce joint metrics for multiple service suppliers that think about cross-supplier impacts and account for impacts that the seller will bear on processes that don't seem to be thought of in-scope to their contract.

IT organizations managing multiple service suppliers might want to have an operational level agreement (OLA), that defines all parties concerned within the method of delivering IT services that can act with one another in an efficient manner so that the desired performance can be taken care of.

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