What Is Performance Level Agreement

An ALS is an agreement between you and your client that defines how your relationship will work in the future. Key performance indicators (KPIs) are metrics that have been selected to measure how well a team has performed against agreed standards. It is important that ALS contains meaningful measures so that the service provider and the customer can clearly assess performance. Service level agreements can contain many service performance metrics with corresponding service level targets. A common case in IT services management is a call center or service desk. Among the metrics generally accepted in these cases are: most service providers provide their service level statistics via an online portal. In this way, customers can check whether the right level of service is being met. If they can`t find it, the portal also allows customers to see if they are entitled to compensation. The SLA metrics required depend on the services provided. Many elements can be monitored as part of an ALS, but the scheme should be kept as simple as possible to avoid confusion and excessive costs on both sides.

When selecting metrics, check the process and decide what is most important. The more complex the monitoring scheme (and associated corrective measures) is, the less likely it is to be effective because no one will have time to properly analyze the data. If in doubt, opt for the simple collection of metrics; Automated systems are the best, as expensive manual metric input is unlikely to be reliable. The fact that ALS must define the measures of service delivery means that many SLAs define KPIs as such. While SLAs define the overall agreement and service standards between service providers and their customers, KPIs are used to measure and monitor performance levels. This article examines the terms SLA and KPIs and contains the necessary guidelines to improve service levels and business performance: Termination process – ALS should define the circumstances under which the agreement may be terminated or expire. The notice period should also be set by both parties. 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.