SERVICE LEVEL

AGREEMENTS

SLA TRAINING GUIDE

Copyright 2002
Easytec Solutions
 What should the SLA cover?
 Introduction and purpose
 Services to be delivered
 Performance, Tracking and Reporting
 Problem Management
 Fees and Expenses
 Customer Duties and Responsibilities
 What should the SLA cover?
 Warranties and Remedies
 Security
 IPR and Confidential Information
 Legal Compliance and Resolution of
Disputes
 Termination
 Using 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
Schedules 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
Schedules 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 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 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
Explained
 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 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
section – 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
Reporting
 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
Reporting 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 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
Explained
 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 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
Explained
 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
Responsibilities
 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
Responsibilities 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 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
Explained
 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.
 Security
 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 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
Information
 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
Information 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
Resolution 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
Dispute 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 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 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 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
Explained
 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 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 Reviews
 Defining the SLA is a dynamic process
 The SLA will need to be updated as the
Customer’s business needs change
 The SLA should be reviewed in its entirety
at least twice a year
 The effectiveness of performance
measuring criteria should be reviewed at
least annually
 Preparing your own
Service 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