Third Party Service Level Agreements

The importance of a service level agreement is to protect your business and set a minimum threshold to meet. Exclusions – Specific services that are not offered should also be clearly defined in order to avoid confusion and eliminate the margins of acceptance of other parties. Most service providers provide their service level statistics through an online portal. This way, customers can track whether the level of service is maintained. If they discover that this is not the case, customers can also see on the portal if they are entitled to compensation. A service level agreement (SLA) is a contract provided by a managed service provider (MSP) that defines the level of service expected by the customer. From a regulatory point of view, companies must enter into a formal contract with suppliers offering products or services. The treaty must clearly address the obligations and responsibilities of all parties concerned. In the past, some organizations may have had informal expectations of vendors who did not commit to writing or did not verify properly, resulting in issues of applicability, vendor risk management, and overall risk management.

It is therefore a regulatory requirement and best practices to enter into a contract with all your suppliers. A service level agreement (SLA) is a documented agreement between a service provider and a customer that identifies both the services needed and the expected level of service. The agreement varies between suppliers, services and sectors of activity. These providers provide limited or no information on target availability and service guarantees. We`ve added links to their service or developer agreements, but it`s best to go directly to their sales teams for specific details. Service level metrics should contain both service and administrative elements. However, for critical services, customers should invest in third-party tools to automatically collect SLA performance data that provides an objective measure of performance. In addition to defining the services to be provided, the contract should also document how the services are to be monitored, including how the data is collected and disclosed, how often it is verified and who is involved in the verification.

. . .

Comments are closed.