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Implementing a service level agreement.

Article Excerpt
[check] This checklist is for managers who need to draw up and implement a service level agreement (SLA). Although this checklist draws on examples from the information technology area, it may be used for agreements in any context. It does not cover service level agreements relating to the appointment of directors.

SLAs were originally used mainly for third party provision of information technology services. In more recent years, there has been a substantial growth in the number and range of services outsourced, as more and more organisations have sought to reduce costs by focusing on core activities. Activities outsourced include the entire human resources management function, payroll administration, and facilities and fleet management.

An SLA can be used inter-departmentally within a company, as well as between organisations, providing a valuable baseline for partnership and outsourcing arrangements.

An SLA should not be confused with a warranty or guarantee that comes with a product or service, where the manufacturer or provider determines the level of after-sales service that the customer can expect to receive. The customer usually has no say.

Definition

"An agreement between the provider of a service and its users which quantifies the minimum quality of service which meets the business need." Hiles, A. (1993) Service level agreements. (See useful reading at the end).

Hiles stresses that this terminology is deceptively simple, in that:

* the agreement is the result of negotiation which recognises the needs...

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