We reside in era wherein the trust factor has become less credible when it comes to money and business matters. Those days are gone when just by giving a word or just by promising something, an unquestionable contract, without any documentation, was taken for granted and no one considered breaching it. Thus, the requirement for having legal agreements and treaties that bind people by what they agreed to the other parties arises. Any violation in such agreement now ends up with legal action, imprisonment and monetary penalties.
Among various agreement types, in business terms, the importance and necessity of creating a Service Level Agreement (SLA) has become greater than before. Nowadays, majority of the companies entering into a contract create a Service Level Agreement to make sure that whatever is agreed is duly delivered by the other party or by themselves without any scope of breach or delays.
Service Level Agreements can be described as imperative documents that maintain the record that includes detailed specification of the services to be provided as agreed to between the parties in contract. The value of Service Level Agreements also extends to the fact that it keeps track of the goals attained and conditions that the company failed to fulfill. A person drafting SLA has to be cautious about the terms and conditions he is putting down on the agreement because even if a minor point is miscommunicated or drafted incorrectly, it may end up being of great loss to the company. Drafting an SLA requires listing down the rules describing how the work and the performance will be measured. It even describes the quality of products or services anticipated and promised to be delivered.
Majority of the companies and MNCs have their own SLAs ready at the time of hiring a vendor or service provider to keep things clear between the parties. The need for creating a SLA is that it brings the associated parties together, who eventually write down the points of service and responsibilities to be taken. It also includes work outline, time lines and resources, projected results and the assurance that the best will be delivered within the quoted price.
Some of the benefits that Service Level Agreement provides are:
- The agreement happens to be an official proof of services agreed upon among the parties.
- It guarantees superior IT service management as the SLA is fed into a Computer Aided Facility Management (CAFM) Software that handles the complete procedure automatically.
- It underlines a quality standard for the services to be delivered as well as makes terms and policies apparent
- It makes targets and aims clear and aids in enhancing service through comparison.
Thus, aService Level Agreement is a must if you want total transparency and clear terms and conditions laid down on an official platform to ensure that the products and services received are of the best or as per the standards the parties agreed upon.