Make sure you are considered unavailable or limited to both the minimum levels and expected service levels, as well as many times. Here, the “expected level” is what the customer pays for, while the “minimum level” is what the customer considers to be bad, that is, an acceptable service. A compensation clause is an important provision in which the service provider agrees to exempt the client company from possible violations of its guarantees. The exemption means that the supplier must pay the customer all third-party procedural costs resulting from the breach of the guarantees. If you use a standard ALS provided by the service provider, it is likely that this provision does not exist. Ask your in-house advisor to design a simple provision to include it, although the service provider may wish for further negotiations on this issue. In What is ALS? How to use service level agreements for success, Adam Henshall concisely defines service level agreements (SLAs): SLAs are an integral part of an IT provider contract. An ALS brings together information about all contract services and their expected reliability in one document. They clearly indicate metrics, responsibilities and expectations, so that in the event of service problems, no party can plead ignorance. It ensures that both parties have the same understanding of the requirements. SLAs should contain what each party needs to achieve its goals. In agreements that serve a customer, you remember that their needs could go beyond the “product.” You may need more than that to achieve your goals — such as weekly advice, reports and technical maintenance on your part.

This direction – which we call “smarketing” — is largely the result of a deliberate decision to work together, set goals and create agreements between the two teams. The essence of ALS is that both parties have a say. In practice, it is rarely feasible or feasible for both parties to be involved at every stage of the creation of the agreement. However, a successful ALS is a collaboration between the two parties.