SLA: what you need to know about this concept

The information technology market is increasingly present in different segments, through solutions that mark the innovation and visionary outlook of many entrepreneurs. Companies that invest in technological solutions position themselves with concept and authority in the sector in which they operate and add value to their production processes and the company’s performance.

However, in order to stand out and have a good position in the globalized market, you need to have credibility and that is what we are going to talk about in this article. After all, have you ever stopped to reflect or heard about what SLA is? What does it mean for your company?

In this article you will learn about this document that adds value and credibility to your company’s services. Check out!

What is SLA and what does it mean for your company?

SLA is the acronym used for Service Level Agreement. This document is prepared for hiring and providing services in the IT area.

This document determines all IT services contracted, in an objective and transparent manner, with all the responsibilities of the service provider duly specified. Therefore, the SLA includes:

– The specifications of the services to be provided by the contracted company;
– The goals that establish deadlines and services;
– Technical support service;
– Time required to perform the service, among other information.

This document is provided for in ABNT NBR ISO-IEC 20000-1 and is a document that offers the guarantee that the contracted IT company will perform and complete the services as proposed in the contract. This document is important, since each IT service needs to go through a series of processes to be implemented effectively.

This document ensures that all stages of the services are carried out appropriately and meet the needs of the contracting company. Therefore, all information contained in the document is detailed and all processes to be carried out are specified.

SLA and metrics indicators

As the SLA document generates transparent and objective negotiation between those involved, the service provider has a positive impact on the company through quality service and greater efficiency. This adds value to business activities, which now has greater productivity, also generating credibility and better positioning based on an active and functional IT structure.

But how can you be sure that the contract will be respected and all stages of the service will be carried out? The contract provides for a fine in case of non-compliance and this creates greater peace of mind for the company manager regarding the seriousness of the technical support available for the service.

This document also allows for better financial control over the contracted services, since a roadmap is established and will only be received for the amounts referring to the agreed services. The SLA requires service level management, which establishes which steps have already been completed, which are in progress and which still need to be performed.

Thus, its effectiveness arises from the control by service indicators that are responsible for demonstrating availability, called Service Availability, and for demonstrating response time, when tests are carried out to check for failures.

Knowing some examples of SLAs

We can cite as an example of an SLA the internet availability service or support for virtual infrastructure with operators or other services. This type of agreement would be an external agreement, where the IT service provider would make the outsourced services available to its client.

However, there is another type of agreement, which is the internal agreement that addresses the company’s need for an IT service for the construction and maintenance of operational systems for the activities of the contracting company. Among these systems, we can mention:

– CRM;
– ERP;
– E-commerce platforms, etc.

And with the advancement of technology, the application of these systems allows much more precise control over business activities and for this reason they are essential for measuring the company’s performance in the competitive market.

SLA and KPI

An SLA is different from a KPI which is a performance indicator tool. This tool collects a company’s data and converts this data and important information, measuring business performance and defining key points for improvements in the company’s different departments.

Using the SLA, it is possible to determine market comparisons between the company and its competitors and evaluate the future development of this company in its segment. KPIs will measure your company’s performance not in relation to the market, but in relation to the performance for a certain period of productivity in the company’s sectors .

The services provided by IT for your business will meet the demands of your company and it will be these terms that must be included in the contract agreement. In other words, the services, deadlines, quality and quantity of services contracted are essential information and must be included in the contract.

How to prepare the SLA?

The IT company must present a list of all the services it provides so that those capable of meeting the contractor’s needs can be defined. Furthermore, all risks that may be faced during the development of these services and which may, perhaps, delay the completion of the task must be foreseen.

Prompt service is an important differentiator for an IT service provider, since if a company has a problem on its network, its productivity is compromised and the risk of losses is high. For this reason, a ready service avoids conflicts between the service provider and its contractor.

The company contracting the services can count on a qualified IT team to monitor your network and guarantee a safer and more reliable service. In addition to taking care to carry out activities for the company, planning the deadline and considering the costs of these services is essential to ensure that the company offers its customers a satisfactory service.