Service Level Agreement

Service Level Agreement (SLA) is important for the reason that it states following:

• Clear and unambiguous details of the service are provided with service days and hours;
• Defines the problem that might occur and their gravity, also providing the reacting time;
• The consequences of missing targets;
• SLA lays down the customer rights and penalties in case of non-performance which ensures that the relationship between the customer and the service provider remains clear and positive;
• What is the procedure, hierarchy and the expertise of the service provider;
• It mentions the guaranteed areas in which the service shall be provided and what shall be exempted;
• What is the method of problem resolving;
• SLA defines the commitments made to and by the customers and well-defined indicators for the customer service which minimizes the chances of disappointing the customer and keep a check of levels of customer satisfaction.

A well-drafted SL Agreement generally discloses the following:-

• Definitions and interpretations of the terms used in the agreement
• Scope of SLA,
• Duration of the SLA,
• Reliability,
• Customer support arrangements,
• Point of Contact, escalation and a communication matrix,
• Mutual Responsibilities,

Financial Provisions

• Payment of recurring fee
• Monthly fee
• One time charges
• Reimbursements
• Miscellaneous fee
• Format of Invoice
• Term period of payment

• Clause for Non-Disclosure of Confidential information,

Miscellaneous

• Arbitration
• Notice
• Amendments And Waiver
• Compliance With The Law
• Governing Law
• Jurisdiction
• Warranties and Guarantees
• Indemnity
• Severability etc

A Service Level Agreement (SLA) is important for both the person providing a service and the one receiving it. It serves as a final word. By this, both the parties play very close attention to the details making it so there is no confusion.

All the services that the customer needs are included in the SLA. This means that the customer knows what to expect in terms of quality of service and other certain parameters are defined, making it a necessary document.

It might appear to some individuals who are beginning with a business venture with different people that the shareholders agreement is not necessary. This is particularly valid with off-the-shelf organizations. It is however a tremendous risk for both the parties to set aside the main points of such agreement particularly when the business is already capable of making benefits. There are business obstacles you need to confront when you are in activity and you need to process, terms, and conditions to allude to. An accomplice should need to sell their share and some other may drop out and you won't have a solution for circumstances like these. There is no specific time when shareholders agreement is made. It can be built amid the improvement of the company.