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Overview of Service Level Agreement - SLA

An agreement that bounds the service provider and the customer is known as service level agreement. Service level agreement consists of a framework that tells what services customers will receive. In laymen term, an SLA is a contract between the provider and the end-user, which defines the level of service that is expected from the provider. These are mostly output-based, and its purpose is to define nature, quality simply, and scope of service customers will receive.

Different Levels of Service Level Agreement

Customer-Oriented Service Level Agreement

It covers all the services given to individual customer groups.

Service-Oriented Service Level Agreement

A large number of customers availing a particular service signed this agreement with the service provider.

Multi-level Service Level Agreement

Divided into levels by sets of customers for availing the identical services, in the same SLA:

Corporate Level: It covers all the affairs which are identical for the entire organization.

Customer Level: It covers affairs that are particular for a customer. While covering the issues related to specific service is the job of service level.

Service Level Agreement or more commonly known as SLA is a Document that exists between a user and a service provider. Even though this Document does not provide any details on how the service is to be delivered, but it gives a measurable framework for the provision of that service. Some of the ways which are used to define the SLA can be the meantime that can exist between failures or an acceptable level of downtime that is mutually agreed upon in an agreed time frame, it can also include support response and resolution times.

Benefits of Service Level Agreement

No Unrealistic Expectations

Most of the customers are frustrated when their expectations are not met, whether these expectations are realistic or not. A comprehensive and well defined SLA helps to manage the expectations effectively by communicating thoroughly the abilities that are present in the service provider.

Complex Issues can be Simplified

Most customers are not interested in how the service works. What they all want to know is how the service will affect them. The SLA can help in the description of the issues that may come forward and how these issues can be resolved if the response is not good enough or satisfactory.

Role of Corpbiz in Drafting Service Level Agreement

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Things Service Level Agreement Consists Of

A Well-Formed SLA Covers the Following Aspects:

  • Define all the terms that agreement contains
  • Period of SLA
  • Collective Obligations
  • Communication Matrix
  • Authenticity
  • Point of Contact and escalation

Financial Provisions

  • Monthly expense
  • Remuneration
  • Pattern of Invoice
  • Onetime expenses
  • Various expenses
  • Payment period
  • A provision in SLA that says non-disclosure of intimate details


  • Settlement of Dispute
  • Compensation
  • Area of authority
  • Correction and Remission
  • Assent with the law
  • Warranties and Guarantees
  • Advantages of Service Level Agreement

Service provider and the customer both need a Service Level Agreement (SLA). SLA is important for both the parties since it serves as a final word between the parties. Both customer and service provider pay close attention even to the sleek details mention in the agreement.

SLA includes all the services that the customer will need. This simply means customers will know in advance what to expect from the service provider in terms of quality and other major parameters.

Service Level Agreement is a Documented, flexible, and unique agreement. It is trouble-free to make any changes in the agreement you can also include additional topics in the agreement.

Additional Topics That You can Add in an Agreement are as Follows:

  • Review or Monitoring
  • Service Credits
  • Rider
  • Liquidation Terms

Why is Service Level Agreement Essential?

Service Level Agreement (SLA) is Crucial Because of the Following Factors:

  • Provides precise, clear, and unambiguous information pertaining to the service
  • Descriptive about the problem and its gravity also narrates the reacting time
  • Tells what will happen if the targets are missed
  • What expertise, hierarchy, and procedure service provider follows?
  • Contains the list of areas in which service shall be provided and what shall be exempted.
  • SLA drafts the rights and penalties for customers
  • SLA policies help in keeping the relationship between the customer and service provider positive and clean
  • SLA talks about the commitments that the service provider will fulfil and make sure customers are happy and satisfied

Registration Procedure of Service Level Agreement

Two Working Days

Our representative will get in touch with you to understand your requirements fully, once you send in your request to us. In case we require any more details, you will be contacted again for more information. Once we have everything we need, we will be working on your request and will eventually send it to you for your feedback and review within the span of only 3 or 4 working days. You are free to get back to us and inform us whether you want to make sure changes or modifications on the draft.

Two Revision Rounds

In case you are not satisfied with the outcome of the Document that is drafted by us or wants us to modify it further, then our lawyers will certainly work on it again. We offer two rounds of iterations free of cost, which is included in the original price.

Frequently Asked Questions

A Service Level Agreement (SLA) acts as a contract between an organization and their service provider. It narrates them about their obligations and expectations of the relationship.

The SLA must cover not only a description of the services to be provided and their expected service levels, but also talk about the metrics by which the services are measured, the duties and responsibilities of each party, the remedies or penalties for breach, and a protocol for adding and removing metrics.

Follow these steps to write SLA Agreement:

  • Assess The Current Situation
  • Define The Level Of Service
  • Define The Terms Of The Agreement
  • Set Performance Levels While Creating Practical SLA
  • Record Escalation Procedures
  • Define The Project's Metrics
  • State Conditions And Fees
  • State Practical SLA Exclusions

  • Customer-Oriented Service Level Agreement
  • Service-Oriented Service Level Agreement
  • Multi-level Service Level Agreement

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Sarfaraz Ahmed Bangi

From Mumbai Recently Purchased @Private Limited Company