Penalty contract
Introduction
A service level agreement (acronym ANS), also known by the acronym SLA (from the English Service Level Agreement), is a written agreement between a service provider") and its client "Customer (economy)") in order to set the agreed level for the quality of said service "Service (economy)"). The ANS is a tool that helps both parties reach a consensus in terms of the level of quality of the service, in aspects such as response time, time availability, available documentation, personnel assigned to the service, etc.[1].
Basically the ANS establishes the relationship between both parties: supplier and client. An SLA identifies and defines the customer's needs while controlling their service expectations in relation to the provider's capacity, provides a framework of understanding, simplifies complicated issues, reduces areas of conflict and promotes dialogue in the face of dispute.
It also constitutes a reference point for the continuous improvement process, since being able to adequately measure service levels is the first step to improve them and thus increase quality indices, KPIs...
Description
An SLA is a negotiated agreement between two parties where one of them is the client and the other is a service provider. These agreements can be legally bound, or be an informal contract (inter-departmental relations). Contracts between service providers and a third party are usually, and incorrectly, also called ANS, although the level of service has already been defined by the initial customer and therefore the agreement between third parties is nothing more than a contract.
The ANS define a common point of understanding on services, priorities, responsibilities and guarantees. Each service area should have a defined SLA, comprising levels of availability, service, performance, or other service attributes such as billing.
The service level can also be specified as target and minimum, so that users can know what to expect (minimum), while providing a target that shows the level of performance. Some contracts may include penalties in case of non-compliance with the SLAs. It is important to note that the agreements refer to the services that the user receives, but not to the way in which the provider offers that service.
ANS have been used since the late 1980s by telecommunications operators as part of their contracts with business customers. This practice has spread to such an extent that it is now common for a user to sign a contract with a service provider that includes a set of SLAs for virtually all markets.