What is Service Level Agreement (SLA) and it's the importance

Posted by David Miller on February 4th, 2021

Service Level Agreements (SLAs) perform a significant role in business, and organizations value the cloud service providers upon various service-based SLAs. Service availability is a KPI for organizations availing IT services as it ultimately determines their service or application downtime.

Here are the top 4 main objectives for having SLAs as part of your agreement(s) with an outsourcing partner.

1. Define Expectations - SLAs help quantifies expectations of "goodness" from the connection in measurable terms.
2. Converge on Customer Service - SLAs support the Vendor remain focused on customer pre-existence and requirements.
3. Build Measurable Standards - An SLA sets clear, measured standards of Vendor review.
4. Penalize non-performance - SLA penalties should incentivize the Vendor to fulfil pledges made to the Client, and scold the Vendor when they do not meet those responsibilities.