Service Level Agreement Template

Service Level Agreement Template

Service Level Management

The purpose of Service Level Management (SLM) is to ensure that the service targets are created, negotiated, agreed, documented, monitored, reviewed and reported to the customer. SLM acts like a liaison between the customer and the service provider which sets the targets in terms of quality, time, and scope as per the SLR and SAC.

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The Service Level Management (SLM) process is responsible for seeking a realistic compromise between the customers’ needs, expectations and the cost of associated services, such that these are acceptable by both the customers and to the IT Organization. Service Level Management is also responsible for:

  • Performing service reviews
  • Creating reports on SLA’s, OLA’s & UC’s
  • Defining metrics and KPI’s

What is a Service Level Agreement ?

Service level agreement (SLA) is a document/agreement that describes the scope of services, details of services, availability, quality, recovery times, etc.

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Service Level Agreement Template
Service Level Agreement

SLA Definition Process

Defining SLA should involve participation of all the service owners, process owners, and all other stakeholders from the IT organization. This definition process can be mentioned as Planning, Development, Piloting, Publish, SLA Activation & Monitoring.

Service Level Agreement Template

Planning process involves:

  • Understanding the business requirements of the customer (with respect to scope of services, timeliness, etc.) and translating it into IT requirements.
  • Gather and analyze historical data from customer or from previous experiences (where similar services were offered to any other customer).

Development process involves:

  • Define, develop, negotiate and standardize SLTs for SLA.
  • Encompass SLTs in SLA.
  • Get approvals from customer on SLA.
  • SLA will contain details like:
    • stakeholders involved
    • stakeholders involved
    • start, review and end dates
    • scope of services
    • roles and responsibilities
    • operational hours
    • holidays list
    • service costs
    • incentives and penalties
    • Define detailed metrics, KPI’S, etc.

Mandatory details needed for SLA development are:

  • vendor’s name
  • vendor id
  • vendor type (elite, large scale business, medium scale business, small scale business)
  • SLA id
  • SLA name
  • SLA type
  • service hours
  • start date and end date
  • description of the SLA


When the service provider is not sure about the realistic conditions in operations; service provider does the piloting before base-lining the SLAs for the next quarter or half a year.
When it’s a Greenfield project, service provider pilots operations and observes the trends, issues, and patterns for few months and then baselines SLAs. The service provider should keep revisiting the piloted SLAs and redefine them after the observations.


In this phase SLAs are standardized and published. Management and stakeholders are made aware of the consolidated SLAs.

SLA activation

In this phase SLAs are activated for the live IT operations. IT operations take the defined SLAs as a baseline, and execute the IT operations.


Monitoring is the main focus of SLM, which involves:

Reactive monitoring:

monitoring the weekly reports, monthly reports, quarterly reports and evaluates the quality of services.

Proactive monitoring:

This is proactively advising the operations and ensuring that there are no SLA misses or breaches, preventing penalties, preventing customer escalations and threats.

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