What is SLA?

Corporate Secretary Service Indonesia – SLA stands for Service Level Agreement or Legal Agreement Service, a contract made as a document and agreed between the business owner or service provider and the customer. The SLA summarizes the services the service provider provides, the service standards that the service provider must meet, and remedies or penalties if the agreed services are not achieved. SLAs are usually used between business owners and customers but can also be contracts or agreements between two departments within a company.

Types of SLAs

There are three types of SLAs depending on the purpose of their use, namely:

Customer Service Level Agreement

A customer service level agreement (CSLA) is an agreement made by the vendor to the customer after both parties agree to determine the services provided by the vendor. Sometimes, CSLA is called an external service agreement. For example, a company hires a public accountant to audit financial statements for three years and includes the agreement in the CSLA document of both parties.

Internal Service Level Agreement

An Internal Service Level Agreement occurs between two parties within a company. Usually, the parties involved have the same goals, so cooperation is carried out to help them achieve these goals.

Multilevel Service Level Agreement

In a Multilevel Service Level Agreement or multilevel SLA, the service provider divides the agreement into various levels specific to the customers using their services. For example, a software-as-a-service provider (SaaS) offers standard services to all customers. However, customers can pay more to get more complete features.

SLA Components

There are several essential components needed in making an SLA, including:

#1 Summary of agreement

The first part of the SLA is the agreement overview. The agreement summary should summarize the basics of the agreement, including the parties involved in the SLA, the date and duration of the agreement, the services provided, and the measures of success for a service.

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#2 Objectives of both parties

The types of SLAs that are made have different objectives. For an SLA involving a customer from an external party, such as a CSLA, the objectives stated in the agreement are those of the customer. If the external SLA is an initiative of the service provider, the objectives can be negotiated based on the customer’s needs and capabilities.

For internal SLAs, the objectives of both parties must be clearly outlined. Usually, both departments that work together have the same goal. So, in an internal SLA, it must be ensured that when one department’s objectives are achieved, so are the objectives of the other parties involved in the Legal Agreement Service.

#3 Service description

The SLA must describe the services offered, the obstacles encountered and solutions (whether there are penalties or maintenance services), deadlines for completion or delivery of services, an outline of the service process, and the technology and applications used, if any.

The internal SLA should explain what is required from the departments involved in helping to achieve their targets. In addition, it is also necessary to explain the roles of the parties involved, such as who is responsible for doing certain things or coordinating with other parties to achieve their goals.

#4 Service cancellation conditions

The SLA must explain under what conditions the agreement can be terminated. For example, an SLA ends when one party does not provide the service as agreed or when everyone involved lacks support on internal SLAs. Notification of SLA cancellation to the parties involved must also be set out in this section.

#5 Signature of agreement

Authorized stakeholders from both parties involved in the SLA must sign the document as an agreement to every detail or process that has been described in the SLA.

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