Why are slas so Important?


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Why are SLAs so Important?
Although they may seem straightforward, SLAs serve a variety of functions.
Ensuring everyone involved is on the same page
At their most basic, SLAs are designed to keep both parties honest. If there is an issue with the service, the SLA acts as vital documentation detailing all the metrics, responsibilities, and expectations that were originally agreed upon. Both parties have access to the SLA, which means that neither may claim that they were unaware of expectations or agreed-upon standards after the fact. A legally reviewed and approved SLA effectively eliminates the possibility of misinterpretation of the contract and provides protection to both the customer and the service provider. Clients enjoy the peace of mind that comes from knowing that they will receive the service they are paying for, and providers have a contract to refer their customers back should they start to demand services that are not included in the agreement.
Providing clear metrics
More than simply defining what the services themselves will consist of an SLA also establishes the metrics by which service levels will be measured. These guidelines allow both parties to better understand and gauge the effectiveness of the service, and whether it is fulfilling the terms of the contract. The metrics outlined in the SLA must be clearly stated and fully quantifiable, so that there is no room for debate about whether vital KPIs are being met.
Offering recourse for unmet obligations
SLAs not only help define standards, set expectations, and offer insight into important metrics, they also act as a roadmap of next steps and consequences if obligations are not met. Should one of the parties fail to meet the standards outlined in the contract, the SLA will define the consequences—potentially including legal penalties or forms of financial restitution. Clearly defined repercussions help hold both parties accountable.
Improving provider-business partnerships
Finally, an effectively implemented SLA helps manage commitments between service providers and customers to improve the service provider-business partnership. Clients and businesses enjoy more productive and successful relationships, and neither has to worry about the other failing to meet their obligations. At the same time, the right SLA can help assuage the concerns of potential new customers, bringing in new business opportunities and improving the brand reputation.
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