The meaning of the term “Service Level Agreement” (SLA) is already clear when it is broken down into spare parts and translated into German: “Service Level” means “Quality of Service” and “Agreement” means “Agreement”. Therefore, an SLA is nothing more than a contract with a service provider that regulates the scope and quality of a given service. Everyone has a different idea of what good service is, but an SLA makes the voice of the customer sound loud and clear: this is the quality standard they expect. Despite the flexibility granted to both parties in negotiating rights and obligations, breach of a service level agreement has consequences similar to those of breach of contract. That`s why it`s important for service providers to attach equal importance to updating their SLA compliance. Of course, the cost of the service is also defined in a service level agreement. In practice, different pricing models have been established. The simplest variant is the invoicing of a fixed amount for a defined period (for example. B month or year). In addition, it is also possible to adjust certain units (for example. B number of malfunction messages, data volume, duration of use of the service). It goes without saying that these models can be combined to consist of a fixed cost component and a variable component.

In the past, service level agreements came from the IT services industry. Today, these contracts are also used in other sectors to define and guarantee the quality of services. Few examples of companies using an SLA are services such as building cleaning, maintenance, financial management, or accounting services. There`s a simple reason why service level agreements aren`t included in a standard employment contract for most service providers. Changes to a treaty that has already been signed can be a costly affair. Not to mention time. A contract is designed for a period of one year or more, while SSAs are designed to be regularly reviewed based on the type of service and requirements listed below. The treaty can then refer simply to the agreed AA while remaining legally binding….