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What Is a Service Level Agreement (SLA)?

Contact Center Glossary > Service Level Agreement (SLA)

Service Level Agreement (SLA) Definition | TLDR

A service level agreement (SLA) is a contract or agreement between a service provider and a customer that defines the level of service expected, including performance metrics, responsibilities, and guarantees.

Service Level Agreement (SLA) Meaning

A service level agreement (SLA) is a contractual agreement between a service provider and a customer that outlines the level of service expected from the provider. It serves as a formal document that defines the responsibilities, commitments, and expectations of both parties regarding the quality, availability, and performance of the services provided. SLAs are commonly used in various industries, including IT, telecommunications, outsourcing, and customer service, to establish clear guidelines and standards for service delivery.

What Are Examples of SLAs?

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A service level agreement (SLA) is a contractual agreement between a service provider and a customer that outlines the level of service expected from the provider. It serves as a formal document that defines the responsibilities, commitments, and expectations of both parties regarding the quality, availability, and performance of the services provided. SLAs are commonly used in various industries, including IT, telecommunications, outsourcing, and customer service, to establish clear guidelines and standards for service delivery.

In addition to outlining service performance metrics, SLAs typically detail other essential elements such as service scope, service-level objectives (SLOs), roles and responsibilities of both parties, escalation procedures, dispute resolution processes, and remedies or penalties for non-compliance. SLAs are designed to establish a mutual understanding of service expectations, mitigate risks, and provide a framework for managing service delivery effectively. Regular review and adherence to SLA terms are essential for maintaining positive customer relationships and meeting contractual obligations.

FAQs

No. While SLAs may include provisions for remedies or penalties in the event of service level breaches, not all agreements incorporate financial consequences. Some SLAs focus on mutual understanding, transparency, and continuous improvement rather than punitive measures.

Yes. SLAs are not static documents and can be revised, updated, or renegotiated as business needs evolve, service requirements change, or performance expectations shift. Regular review and adjustment of SLAs ensure alignment with current objectives and standards.

Yes. SLAs can be tailored to address the unique requirements and priorities of both service providers and customers. Customization allows parties to define relevant metrics, targets, and performance indicators that align with their business objectives and service expectations.

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