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SERVICE LEVEL SERVICE LEVEL AGREEMENTSAGREEMENTS
SLA TRAINING GUIDE
Copyright 2002
Easytec Solutions
What should the SLA cover?What should the SLA cover?
Introduction and purposeServices to be deliveredPerformance, Tracking and ReportingProblem ManagementFees and ExpensesCustomer Duties and Responsibilities
What should the SLA cover?What should the SLA cover?
Warranties and RemediesSecurityIPR and Confidential InformationLegal Compliance and Resolution of
DisputesTermination
Using Schedules or ExhibitsUsing Schedules or Exhibits
Specific information relating to the relationship between the Customer and Supplier is best included in Schedules or Exhibits attached to the main Agreement.
Reference is normally made in the main body of the Agreement to the respective Schedules or Exhibits to simplify the Agreement clauses.
Typical Information to go in Typical Information to go in Schedules or ExhibitsSchedules or Exhibits
A. Specifications of standard services
B. Specifications of customised services
C. Service availability specifications
D. Location of service delivery
E. Change control procedures for services
F. Service monitoring and performance measures
Typical Information to go in Typical Information to go in Schedules or ExhibitsSchedules or Exhibits
G. Specification of service level reports
H. Service Desk and other support criteria
I. Problem escalation procedures
J. Detailed fees and expense schedules
K. Scale of any penalties or refunds
L. Addresses for Notices
M. Procedure for changing the Agreement
Understanding the SLAUnderstanding the SLA
In the next set of slides we will give additional information on the topics to be included within the SLA.
These topics are all covered in detail within other components included in the SLA Toolkit
Introduction and PurposeIntroduction and Purpose
This introductory section of the SLA agreement covers the following key topics:– Purpose and Objectives – Information on the two parties– Commencement and duration– Definitions
Introduction and Purpose Introduction and Purpose ExplainedExplained
The Introduction states the reasons for having an SLA and defines key aspects of the agreement
It specifies the two parties involved and includes a commencement date and duration
It includes a definitions section that describes terms used in the Agreement
Services to be DeliveredServices to be Delivered
The Services section of the SLA agreement is supported by Schedules A, B, C ,D & E and covers the following key topics:– Standard services– Non-standard services– Service availability– Location of Delivery– Changes to services
Services to be Delivered Services to be Delivered section – Explainedsection – Explained
This is the most critical section of the Agreement as it describes the services and the manner in which those services are to be delivered
Standard services are often separated from customised services but this distinction is not critical
The information on the services must be accurate and contain detailed specifications of exactly what is being delivered.
Performance, Tracking and Performance, Tracking and ReportingReporting
This section of the SLA agreement is supported by Schedules F & G and covers the following key topics:– Key personnel information– Monitoring of services– Benchmarks, targets and metrics– Service level reporting– Service review meetings
Performance, Tracking and Performance, Tracking and Reporting ExplainedReporting Explained
A key part of the Agreement which deals with monitoring and measuring service level performance
Every service must be capable of being measured and the results analysed and reported
The benchmarks, targets and metrics to be utilised must be specified in the Agreement
The service performance level must be reviewed regularly by the two parties
Problem ManagementProblem Management
This section of the SLA agreement is supported by Schedules H &I and covers the following key topics:
– Service Desk and other support criteria
– Problem definition
– Problem escalation
Problem Management Problem Management ExplainedExplained
The purpose of problem management is to minimise the adverse impact of incidents and problems
There must be an adequate process to handle and resolve unplanned incidents
The must be preventative activity to reduce occurrence of unplanned incidents
Formal records and logs must be maintained of all incidents and problems
Fees and ExpensesFees and Expenses
This section of the SLA agreement is supported by Schedule J and covers the following key topics:– Fees for standard or non-standard services– Reimbursable expenses– Invoices and payment terms– Taxes payable– Interest for late payments
Fees and Expenses Section Fees and Expenses Section ExplainedExplained
Both parties need to discuss and agree on compensation levels for the Supplier
The basis of calculation for the costs of supplying the services need to be understood by both parties
The terms of payment need to be clearly stated
Treatment of tax and interest on late payments need to be agreed.
Customer Duties and Customer Duties and ResponsibilitiesResponsibilities
This section of the SLA agreement covers the following key topics:
– Processing and authorising invoices
– Access, facilities and resources
– Training on specialised equipment or tasks
– Approvals and information
Key Customer Duties and Key Customer Duties and Responsibilities ExplainedResponsibilities Explained
The Customer has to understand that it also has responsibilities to support the service delivery process
The Customer must arrange for access, facilities and resources for the Supplier’s employees who need to work on-site
The Customer must arrange for adequate training of its employees to meet health and safety requirements
Warranties and RemediesWarranties and Remedies
This section of the SLA agreement is supported by Schedule K and covers the following key topics: – Service quality– Indemnities– Third part claims– Remedies for breaches– Exclusions– Force majeure
Warranties and Remedies Warranties and Remedies ExplainedExplained
In the event that the service delivery is not of the promised standard, the Supplier should provide warranties and remedies
These warranties and remedies usually cover service quality, breaches of the Agreement and third party claims as a minimum.
The Agreement is likely to have a Force Majeure clause covering events outside the control of either party.
SecuritySecurity
This section of the SLA agreement covers the following key topics: – Physical access– Logical access– Compliance with Customer’s security policies– Information and data security measures– Disaster recovery– Encryption
Security ExplainedSecurity Explained
Security is a particularly critical feature of any SLA
The Client must provide controlled physical and logical access to its premises and information
The Supplier must respect and comply with the Client’s security policies and procedures
There must be adequate provision for disaster recovery and business continuity planning to protect the continuity of the services being delivered.
IPR and Confidential IPR and Confidential InformationInformation
This section of the SLA agreement covers the following key topics:
– Intellectual Property Rights (IPR)
– Confidentiality
– Responding to Court Orders
– Destruction of data and records
IPR and Confidential IPR and Confidential Information explainedInformation explained
The intellectual property rights of either party needs to acknowledged
Both parties are likely to have access to confidential information about the other party and this confidentiality need to be protected
Both parties need to comply with Court Orders to supply information about the other party
The treatment of confidential information at the end of the Agreement needs to be covered
Legal Compliance and Legal Compliance and Resolution of DisputesResolution of Disputes
This section of the SLA agreement covers the following key topics: – Legal jurisdiction– Export regulations– Informal dispute resolution– Arbitration issues– Limitation of action clause– Limitation of liability clause
Legal Compliance and Legal Compliance and Dispute Resolution ExplainedDispute Resolution Explained
The legal jurisdiction for the Agreement needs to be determined in order that it may be enforced
Most Governments have stringent export regulations and these need to be enforced.
There needs to be agreement on the use of informal methods for dispute resolution and also on the use of arbitration
There is usually a limitation of liability clause to restrict the total liability of the supplier and the customer
Ending the AgreementEnding the Agreement
This section of the SLA agreement covers the following key topics:
– Termination at end of initial term
– Termination for convenience
– Termination for cause
– Payments on termination
Termination Issues ExplainedTermination Issues Explained
All Agreements must include a means by which the Agreement may be ended
This section provides information on how the Agreement is to ended after the end of the initial term, in the event of due cause by either party and in the event that either party wishes to discontinue the arrangement.
It also covers the issues of payments to be made in the event of Agreement termination
General Agreement ClausesGeneral Agreement Clauses
This section of the SLA agreement is supported by Schedules L & M and covers the following key topics:
– Notices– Standard of care– Assignment– Entire Agreement– Severability– Changes to Agreement– Non-solicitation
General Clause Section General Clause Section ExplainedExplained
This general section is to cover some of the legal issues required in any formal Agreement
It provides a legal basis for the document to ensure enforceability where required
It includes also a clause on non-solicitation to ensure both parties avoid poaching employees of the other party.
Discussions and MeetingsDiscussions and Meetings
The SLA process is one of negotiation and discussion
The SLA provides the framework for such meetings
Potential issues and problems can be discussed before they occur
Outcomes are more certain and expectations more realistic
Regular SLA ReviewsRegular SLA Reviews
Defining the SLA is a dynamic processThe SLA will need to be updated as the
Customer’s business needs changeThe SLA should be reviewed in its entirety
at least twice a yearThe effectiveness of performance
measuring criteria should be reviewed at least annually
Preparing your own Preparing your own Service Level AgreementService Level Agreement
You should now be more familiar with the structure and required framework of an SLA
The SLA Toolkit provides interactive SLA templates together with guidance and instructions for preparing each section of the SLA
Do remember to get a legal specialist to review the final SLA to ensure that the SLA is will stand up to a legal challenge