SLA and its importance

Do you know the SLA (Service Level Agreement)? ✅ In today’s article we will tell you about the importance of these contracts when it comes to Inboud Marketing, Outsourcing or outsourcing ICT services or cloud computing. 🚀Don’t miss it!

More and more companies are choosing to outsource ICT services or cloud computing. In order for this process to be carried out successfully and in accordance with the law, Service Level Agreements or SLA (Service Level Agreement) contracts were created.

These are written agreements in which the ICT service provider commits to the client (the company that outsources the service) to offer a certain level of quality and to establish control and resolution mechanisms in the event of incidents.

Its purpose is to avoid possible conflicts between companies and telecommunications companies. So, as we can see, they are legal agreements that protect the interests of ICT services customers and offer transparency in the commercial relationship established by both parties.

So, the SLA is in charge of identifying and defining the customer’s needs while meeting their expectations of the service. And, of course, it favors continuous service improvement and increases quality rates.

We can find 4 types of SLAs:

• SLA of service: it is a standard service for all customers who contract the same service. It is very useful when resolution and response times are different.
• SLA for contact: it is a standard service for all customers who hire the same service.
• Customer-based SLA: this is for all services contracted by the same customer, group of customers or business area.
• Multi-level SLA: it is a combination of service and customer SLA, it is at corporate level and avoids duplications and incompetence between agreements.

Once we have explained what a Service Level Agreement is, what it consists of, its purpose, types, … We are going to explain what its components are, the consequences of not having it contracted and the importance of signing it.  

What are the components of an SLA?

Service level agreements are essential in companies that provide some kind of service to customers, such as telephone switchboards and call centers, so we must find in the agreement the components of the agreement in two specific areas: service and management.

In the service area, we will find those components related to the specifications of the company’s services. That is, what is included or excluded, the conditions of availability, the responsibilities of each party …

While in the management area you will find those components referring to the measurement methods, reports, content and frequency specifications, the incident resolution process, the indemnification clause …

Bearing in mind the types of agreements explained above and the components of each area, we can identify 4 types of categories to correctly structure the SLA. These categories are:

• Work volume: they specify the level of performance requested from the supplier.
• Quality of work: specify the supplier’s level of conformance to the established quality standards.
• Responsiveness: they measure the supplier’s ability to perform the tasks or attend to the requests or incidents.
• Efficiency: they indicate the provider’s effectiveness in providing the service.

What are the SLA contract clauses, and what is the impact of non-compliance?

Every SLA contract should include in its clauses the actions and consequences in the event that the service provider fails to comply with such terms.

In other words, it should reflect the compensation to be received by the customer from the service provider or vice versa.

Therefore, it shall contain the contact information of the provider and the customer for proper communication between both parties in the event of a malfunction of the service, incidents and/or other possible circumstances that may occur that require communication from both parties.

In addition, it should also collect:

• The period of time in which you will be able to make calls for technical attention.
• If there is any other means of communication (email, web form or chat), which must be specified in the document.
• The duration of the service.
• The terms and methods of payment.
• The possibility of incorporating new services to the contract.
• The technical quality of the service (speed, processing capacity, technologies, security measures, updates of software and firmware, …).
• Acceptable error limits.
• …

It should be clarified, that within the contract, the responsibilities of each signatory party (of the supplier and of the client) are specifically stated.

So the customer must assign a person to deal with the supplier to resolve any possible incidents.

And, the supplier must comply with the service characteristics stipulated in the contract to satisfy the customer.  

Why is it important to have a service level agreement?

The importance of the service level agreement established in companies that outsource external IT services lies in the fact that communication between the marketing and sales area or department must be fluid in order to generate better results for the company.

The service level agreement must be in place in order to generate better results for the company. This way, it is achieved that the efforts of both teams offer leads and customers a better experience, improves the corporate culture of the company and achieves its objectives.

In addition, it provides companies with benefits such as:

• Knowing the customer’s expectations.
• Setting the terms of service.
• Determine the indicators that measure the quality level of the service.
• Agree on deadlines.
• Avoid conflicts.
• …

At Gesditel, we are always thinking about the best way to help you and inform you for the procedures and tools you need for the proper functioning of your company.

In this case we wanted to explain to you the importance of SLA contracts when it comes to Inboud Marketing, Outsourcing or outsourcing of ICT services or cloud computing.

Remember that the service provided by your company will be the image you give to customers and, therefore, the key to increase sales and satisfy your customers.

If you are interested in outsourcing your ICT service, we have all the tools you need to achieve it at your disposal.

Do not hesitate and contact us, we will assist you without obligation. We look forward to hearing from you.

We hope we have been of great help and that your SLA contract meets your needs and is carried out by your supplier in compliance with the agreement.