Service Performance – Metrics and performance levels to measure performance are defined. The customer and the service provider should agree on a list of all the metrics they use to measure the provider`s service levels. This last point is critical; Service requirements and vendor functions are changing, so there needs to be a way to ensure that the SLA is updated. Security – All security measures taken by the service provider are defined. Typically, it revolves around the development and consensus on anti-poker, IT security, and privacy agreements. Termination Procedure – The SLA should define the circumstances in which the agreement can be terminated or expires. The period of notice for both parties should also be set. The SLA will also contain a section describing exclusions, i.e. situations where the guarantees of an SLA – and the penalties for non-compliance with them – do not apply. The list may contain events such as natural disasters or terrorist acts. This section is sometimes referred to as a force majeure clause to excuse the service provider from events that do not have adequate control.
Management elements should include definitions of measurement standards and methods, reporting processes, content and frequency, a dispute resolution procedure, a indemnification clause to protect the customer from third-party disputes in the event of a breach of the level of service (but this should already be covered in the contract) and a mechanism to update the agreement as appropriate. This Tradeshift Service Level Agreement defines the availability objectives of the system, which maintains tradeshift for the set of software-as-a-service (“SaaS”) solutions. In some cases, this document may be included in a subscription agreement for trade services (an “order”) between Tradeshift of an authorized reseller and a customer (the customer party) and, in this case, is part of that order. Tradeshift may update this Service Level Agreement from time to time, subject to notification requirements in all contracts from which it is referenced. Typically, these processes and methods are left to the outsourcing company to ensure that such processes and methods can support the SLA agreement. However, it is recommended that the client and the outsourcing company collaborate during the negotiation of the SLA in order to eliminate misunderstandings about the process and method of support, as well as the management and reporting methods. Beyond these three types, there are three other classifications: client-based, service-based, multi-tiered SLAs….