Definition of a Level Agreement
A level agreement is a contract between a service provider and the customer that defines the levels of service and responsibility of both parties. There are two different kinds: a service level agreement (SLA) and an operational level agreement (OLA). Each is an important tool for managing the relationship between service provider and customer.
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Purpose
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The successful performance of a service requires clear understanding by both parties. Both types of level agreements are designed to prevent conflict by ensuring that both parties use the same criteria to evaluate the quality of the service.
Comparison
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An SLA is a negotiated agreement between the provider of a service and the client that clearly defines the service to be provided. An OLA describes how the services will be accomplished.
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Service Level Agreement
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An SLA establishes a common understanding regarding the minimum performance criteria for a provider of a service. It typically includes any penalties that will apply if the standards are not met.
Operations Level Agreement
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An OLA supports an SLA with details about how the parties will work together. The agreement includes the responsibilities of each party, authority designations and support functions, such as response times and roles of the various departments involved.
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References
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