What are "service level agreements" (SLAs)?

Service level agreements (SLAs) are contracts that outline the expected level of service between service providers and customers. These agreements set specific standards and metrics for service delivery, ensuring that both parties understand their responsibilities and what is expected in terms of service quality, response times, and other performance indicators. SLAs serve as a formalized agreement that protects both the service provider and the customer by providing a clear framework for accountability and performance evaluation.

The characteristics and components of SLAs often include defined services to be provided, measurement criteria for performance, remedies or penalties for failure to meet those standards, and provisions for regular reviews or updates to the agreement. This structured approach helps to manage expectations, improve service quality, and foster better relationships between service providers and customers.