SERVICE-LEVEL AGREEEMENT By Patrick Mayaki

DEFINITION A Service-level agreement (SLA) is a document that describes the level of service expected by a customer from a supplier Service-Level Agreement

CONTENTS SLAs commonly include segments to address the following: A Definition of Services Performance Assessment Problem management Service-Level Agreement

DEFINITION OF SERVICES Several transactions involving the provision of services from supplier to consumer could warrant the use of a Service-level Agreement. They all define their services differently. EXAMPLES B2C (Rogers to John Doe) B2G (Web Designer to Service Ontario) B2B (PeopleSoft to Sheridan College) Service-Level Agreement

PERFORMANCE ASSESSMENT In order to assess the performance of a supplier, a “level of service” must be defined, with specific details regarding the levels of availability, serviceability, performance, operation, or other attributes of the service. The specifications must have measurable metrics in order to reduce the potential for deliberate or inadvertent misinterpretation. Service-Level Agreement

PERFORMANCE ASSESSMENT Common Metrics Service Availability – amount of time service is available for use, e.g. 99% uptime. Defect Rates – counts or percentages of errors in major deliverables, e.g. process errors, missed deadlines, abandonment rate, etc. Technical Quality – predetermined specifications regarding quality of service, e.g. first call resolution. Security – preventative measures employed to ensure security, e.g. anti-virus updates, secure networks, etc. Service-Level Agreement

PERFORMANCE ASSESSMENT Other Metrics The number of users that can be served simultaneously Whether persons affected by scheduled downtime were notified in advance Many more Service-Level Agreement

PROBLEM MANAGEMENT The Metrics help determine the remedies or penalties to be issued in the event of a problem. Customers could use an SLA management tool to monitor and assess the metrics, or outsource to a third-party monitoring organization. Service-Level Agreement

CRITICAL POINTS A change in management or obsolescence in technology could affect service. Proliferation in Outsourcing and Cloud Computing would increase sensitivity to changes in service SLAs need to be continuously revised to adapt to changes in scope Service-Level Agreement

END Any Questions? Service-Level Agreement