Set a good base number. Defining the right measures is only half the fight. To be useful, measures must be set at reasonable and achievable performance levels. In the absence of solid historical measurement data, you should be prepared to review and adjust parameters later through a predefined process specified in ALS. Download a free example of the service level business model to get more knowledge about service level management. Typically, these processes and methods are left to the outsourcing company to determine that these processes and methods can support the ALS agreement. However, it is recommended that the client and the outsourcing company work together during the SLA contract negotiations to clear up misunderstandings about the support process and method, as well as management and reporting methods. The last part of a service level contract deals with service management. This section covers both the availability of services and service requirements. A concise ALS contains information on the availability of telephone support, response time to service requests, and options for remote support. SLAs are an integral part of an IT provider contract.

An ALS brings together information about all contract services and their expected reliability in one document. They clearly indicate metrics, responsibilities and expectations, so that in the event of service problems, no party can plead ignorance. It ensures that both parties have the same understanding of the requirements. The ITIL 4 Foundation guide describes an effect in which a service provider`s metrics consistently meet defined objectives, but customers are dissatisfied with the service they receive and are also frustrated that the provider does not realize it. Typically, this occurs when the service provider lacks essential business functions and important results for the consumer. As a result, there is a mismatch between the customer`s perception of service and the provider`s perception of service performance. SLAs are an important part of any subcontracting and technology provider contract. Beyond expectations for type and quality of service, ALS offers remedies if requirements are not met.

The establishment of a service level contract begins with the organization`s ITIL service strategy. Based on the organization`s service strategy, new services or changes to existing services are designed during the service design phase of the ITIL servicecycle. The performance metrics, which will eventually form part of the service level agreement, are already identified in the ITIL service design phase. Depending on the design of new or modified services, these services will be implemented, tested and made available during the service lifecycle transition period. From the service strategy phase to the service transition phase, all business requirements between the company and the IT service provider are documented and agreed upon. These business requirements form the basis on which the potential service level agreement is established. It is a document that defines the specific responsibilities of the IT service provider and its client in providing a service. Performance metrics are listed as a minimum requirement for specified service quality. These performance metrics are based on business requirements and sometimes a trade-off between business requirements and the CAPACITy of the IT service provider may have to be found to ensure that performance levels can be realistically met.