What is Service Level Agreement (SLA)
A service-level agreement (SLA) is a document that spells out two or more parties' rights and obligations under a contract for work (such as between a company and its service provider). The main purpose of an SLA is to spell out the level of service that will be provided under the agreement. An internal IT services organisation may also provide an SLA to its internal business “customers.” The classic example of an SLA is with a software solution provider, where the document depicts like what penalties the provider will incur if its performance falls short of specified qualityand functionality levels. Usually, in this case, the penalties will follow a stepped schedule — for example, “If the software is found to have reported bug, then customer is entitled to a x percent refund of its software cost he paid for; and if the mutually agreed deadline passed then x percent of software cost will be deducted/refunded and so on. Why is it important to have an SLA? It is as important to have...