A Service Level Contract (SLA) is a formal document that defines a working relationship between the parties to a service contract. The reputation of ALS depends on whether the service is provided by an internal provider (internal central division/function) or by an external provider (Bought-in). Using a reprographic unit and purchased cleaning services, the relationships between the parties are demonstrated and explained: when services are provided by an in-house provider, ALS replaces a contract. SLAs are generally used when internal fees are charged for providing the service in-house or when the service is so important to the end user that a formal written agreement is the most appropriate way to ensure that the requirement is met. There may be cases where an institution can set up a separate business, sometimes referred to as a “trapped” company, to provide a desired service. The working relationship related to how the company is treated as an in-house or purchasing service depends on the management structure of the business. Please follow instructions regarding captive businesses. In this guide, the term “administration” has been used to identify the department within the institution that will set up and execute the day-to-day management of the service, whether acquired or made available internally. The executive service should take full account of the needs of end-users and have sufficient knowledge of the service to determine the resources needed to meet the needs and, if necessary, negotiate them with the service provider. ALS is a management tool that has been put in place to monitor key service elements required by the client. It is regularly checked by the supplier and the customer, probably every month.
Defined service levels are measured online on the basis of agreed criteria and evaluated with a score. This evaluation process indicates how the various elements of the treaty work and establishes an image of the treaty as a whole. For all the service elements covered by the actions, targets are set and improvement targets are set. These are subject to ongoing review. When services are purchased by an outside provider, a formal contractual agreement is reached between the institution and the service provider. ALS is used to provide the daily work details needed to support the contract. It is the starting point for contract monitoring and management and is often the source of corrective measures that could prevent a more serious contractual situation. The content of an ALS should be agreed between the service provider and the executive service within the framework of the institution`s administrative, financial, security and environmental procedures and regulations and, of course, take into account the needs and opinions of end-users.
The implementation of an ALS – Service Level Agreement as part of a contract can be seen as a very professional way of managing the service.