What is a Service Level Agreement and the Types of SLA (2024)

Every professional who wants to develop their career in IT Service Management should consider an ITIL 4 certification course. Once certified in ITIL Foundation, you will be able to guide a business organization in executing the best IT service management practices along with using IT as a tool for its growth or change.

What is Service Level Management (SLM)?

Service Level Management, or SLM, is defined as being “responsible for ensuring that all its service management processes, operational level agreements, and underpinning contracts, are appropriate for the agreed-upon service level targets. SLM monitors and reports on service levels, and holds regular customer reviews.”

In other words, the key criteria for any information to be contained within a Service Level Agreement (SLA) are that it must be measurable, with all language used is clear and concise in order to aid understanding.

Understanding SLM is one of the steps in getting an ITIL® certification. The IT Infrastructure Library (ITIL) certification is a globally recognized IT service management certification, distributed by Axelos. There have been several versions of ITIL, with the latest one being ITIL 4 2018. The ITIL Certification courseis an entry-level qualification in the field of IT service management, granting Foundation certification to those who complete the studies.

How Do You Design SLA Structures?

There are several ways in Service Level Management in which you can structure your SLAs. To do that, here are a few important factors to consider:

  • Will the SLA structure allows flexibility in the levels of service to be delivered for various customers?
  • Will the SLA structure require much duplication of effort?
  • Who are the stakeholders who will sign the SLAs?

ITIL focuses on three types of options for structuring SLA: Service-based, Customer-based, and Multi-level or Hierarchical SLAs. Many different factors will need to be considered when deciding which SLA structure is most appropriate for an organization to use.

What Are The 3 Types of SLA?

1. Corporate Level

All of the general issues relevant to the organization are covered, and they are the same throughout the entire organization. For example, with security SLA at the organization level, every employee needs to create passwords of 8 characters and must change them every thirty days—or every employee needs to have an access card with an imprinted photograph.

2. Customer Level

Those issues specific to a customer can be dealt with. Security requirements of one or more departments within the organization are higher. For example, the financial department needs more top security measures by virtue of its crucial role and handling of financial resources.

3. Service Level

All issues relevant to a specific service (in relation to the customer) can be covered. Applies to all customers that contract the same service — for example, contracting IT support services for everyone who uses a particular IP telephony provider.

Using a multi-level structure for a large organization reduces the duplication of effort while still providing customization for customers and services. Therefore, corporate-level SLAs apply to everybody and every department in that organization; customer level SLAs apply to the department, and so on.

Become a IT Service and Architecture Professional

    prevNext

    Here's what learners are saying regarding our programs:

    • What is a Service Level Agreement and the Types of SLA (3)

      Efren Jr Bernardino

      ITIL course from Simplilearn helped me to improve my service towards my clients. The learning was helpful and knowledgeable. Thank you, Simplilearn.

    • What is a Service Level Agreement and the Types of SLA (4)

      Neeraj Vishwanathan

      I am a Sr. Account Delivery Manager with DXC technologies (Hewlett Packard Enterprise). I owe Simplilearn for being the facilitators and stepping stones in my role change and promotion. I completed ITIL and Prince 2 certifications from Simplilearn and found it to be the most trusted and reliable platform for online training certification. The customer support was always there to guide me, making things simpler for me.

    prevNext

    Not sure what you’re looking for?View all Related Programs

    SLA Example

    Let’s use another example. Say we are a beverages provider, with tea, coffee, and juices in our service portfolio. If customer A wants the tea to be provided every morning and evening, coffee before and after lunch, and juices during lunch hours, that’s the customer-specific SLA we have signed with that particular customer, and that’s how we price the offering.

    On the other hand, if we also have a stand where we offer juices throughout the day but at fixed prices and where customers B and C can source their needs, this is a service-based SLA.

    So what does an SLA document typically consist of? Aspects of the service, including responsibilities, quality, and availability, are agreed on between the service provider and service user. Therefore, you should make sure that you can deliver the promised product at the promised time.

    An SLA document typically consists of:

    • An introduction to the SLA, what does this agreement propose
    • A Service description, what service this SLA supports, and details of the service
    • Mutual responsibilities, who’s responsible for what part of the service
    • Scope of SLA
    • Applicable service hours, from what time till what time is the service available according to the agreement
    • Service availability, how much is the service available during the service window and outside of the service window
    • Reliability
    • Customer support arrangements
    • Contact points and escalation; a communication matrix
    • Service performance
    • Security
    • Costs and charging method used

    Conclusion

    Understanding Service Level Management and Service Level Agreement structure give you an edge when helping your organization deliver on their promises. Gaining the ability to create and manage service solutions ensures that your organization and its customers will be able to communicate more clearly to fulfill mutual needs.

    Getting ITIL certified can help boost your career in IT. Ensure you are in top shape for the ITIL 4 certification exam with Simplilearn’s ITIL 4 Foundation Certification Training course. Simplilearn also offers a variety of other ITIL training courses, including ITIL Expert programs.

    Become a IT Service and Architecture Professional

      • What is a Service Level Agreement and the Types of SLA (5)

        ITIL® 4 Foundation

        • 4 simulation test papers for self-assessment
        • ITIL 4 Foundation exam voucher included

        View Program

      • What is a Service Level Agreement and the Types of SLA (6)

        ITIL® 4 Specialist: Create, Deliver and Support

        • Simulation test papers for self-assessment
        • 24x7 learner assistance and support

        View Program

      prevNext

      Here's what learners are saying regarding our programs:

      • What is a Service Level Agreement and the Types of SLA (7)

        Efren Jr Bernardino

        ITIL course from Simplilearn helped me to improve my service towards my clients. The learning was helpful and knowledgeable. Thank you, Simplilearn.

      • What is a Service Level Agreement and the Types of SLA (8)

        Neeraj Vishwanathan

        I am a Sr. Account Delivery Manager with DXC technologies (Hewlett Packard Enterprise). I owe Simplilearn for being the facilitators and stepping stones in my role change and promotion. I completed ITIL and Prince 2 certifications from Simplilearn and found it to be the most trusted and reliable platform for online training certification. The customer support was always there to guide me, making things simpler for me.

      prevNext

      Not sure what you’re looking for?View all Related Programs

      What is a Service Level Agreement and the Types of SLA (2024)
      Top Articles
      10 Things To Do When Business Goes Quiet
      The 9 Best Free Workout Apps of 2024 | Fortune Recommends Health
      Rpg Maker Fullscreen
      Comerica Park - Detroit Tigers
      Happy Ending Massage Milwaukee
      Dragon’s Dogma 2 Gets New Casual Mode and More Improvements Ahead of PS5 Pro Enhanced Patch - IGN
      What Shoes Does Baylen Levine Wear
      Revit Forums
      Stone Eater Bike Park
      Current Inmate Database & Daily Arrests
      Craigslist Virginia For Sale
      Cheap Manicure Near Me
      Littleton U Pull Inventory
      Specialkfree Cooler.com
      KMS ver. 1.2.369 – Tactical Relay & Super Haste!
      Why Did the Soviet Union Collapse?
      Hours Of Chase Bank Near Me
      VesalBlood ALTERNE: Diesem Fernen Traum - Ri47
      Getting Started With Python IDLE – Real Python
      Becker-Hunt Funeral Home Obituaries
      7 Things To Know Before You Buy Gas at Sam's Club
      A Proven Plan for Financial Success | RamseySolutions.com
      Ncsu Starrez
      Craigslist Ocala Garage Sales
      Guardians Of The Galaxy Holiday Special Putlocker
      Igloocar/Dennison semirremolques con caja de lona from de neerlandés venta
      Ridgeline Endoscopy Center Dr Pool
      Adam Kovic Google Drive
      Who Is The Blonde In The Cable Dahmer Commercial
      Wedding Dr Amy Hutcheson Married
      Solarmovieswin
      Nicole Webb Facebook
      Used Four-Wheelers For Sale Near Me
      Whole Foods Amarillo Texas
      Nueces County Jail Inmate Search Vinelink
      R+L Carriers Tracking | Instant Shipment Information.
      What is the Financial Ombudsman Service and how does it work?
      Charli D'amelio Tribute
      logo!: #ThatGirl: Hilfe, muss ich perfekt sein?!
      Melvor Volcanic Cave
      Harris Teeter Path
      On a testé : une brosse visage nettoyante qui n'a aucun défaut
      Froedtert Billing Phone Number
      David Baker, biochemist: ‘Now we can build completely new proteins to do exactly what we want’
      O'reilly's Deridder Louisiana
      Flixtor Nu Not Working
      Week 2 NFL Power Rankings: 1-32 poll, plus which newcomer had the best performance for every team?
      Joeyfeetgirl
      Milestat 2023
      Chc Walk In Edmonds
      When Is Petsmart Dollar Per Gallon Sale 2022
      Vintage Stock Edmond Ok
      Latest Posts
      Article information

      Author: Kieth Sipes

      Last Updated:

      Views: 6232

      Rating: 4.7 / 5 (47 voted)

      Reviews: 94% of readers found this page helpful

      Author information

      Name: Kieth Sipes

      Birthday: 2001-04-14

      Address: Suite 492 62479 Champlin Loop, South Catrice, MS 57271

      Phone: +9663362133320

      Job: District Sales Analyst

      Hobby: Digital arts, Dance, Ghost hunting, Worldbuilding, Kayaking, Table tennis, 3D printing

      Introduction: My name is Kieth Sipes, I am a zany, rich, courageous, powerful, faithful, jolly, excited person who loves writing and wants to share my knowledge and understanding with you.