An SLA, i.e. service level agreement is a contract between a vendor and the end user that defines the standard level or quality of service expected from such a vendor. An SLA or Service Level Agreement will define the service levels that have to be achieved by a vendor and may also provide for remedies and penalties in the event of non-fulfilment of such service levels. Let me explain a bit more with a day to day example. For instance, an EduTech startup (say XYZ), that is outsourcing the textbooks production to a service provider, gets an vendor agreement with SLA included in it, then the SLA ( Service Level Agreement) related clauses would involve the following:
- Delivery timelines
- Minimum quantity of delivery within a mentioned duration of time
- Critical delivery items (as in threshold meeting)
- Meet the Standard of packaging
- Monitoring and measurement of timelines and delivery thresholds.
- Penalties and remedies for default items is mentioned
- Termination right of XYZ for a continued breach/default of SLAs
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