SLA Life Cycle

Life Cycle of SLA (Service Level Agreement)

Steps included in SLA Life Cycle 

1. Discover service provider:- This stage entails finding a service provider who can fulfill the organization's demands and is qualified to offer the needed service. This can be accomplished by conducting research, obtaining proposals, or contacting vendors.
2. Define SLA:- The service provider and the organisation identify and agree upon the service level requirements in this step. This includes establishing the metrics, targets, and service level objectives that will be used to gauge the service provider's success.
3. Establish Agreement:- An agreement is made between the organisation and the service provider defining the terms and conditions of the service after the service level requirements have been defined. The SLA, any consequences for non-compliance, and the procedure for tracking and reporting on the service level goals should all be outlined in this agreement.
4. Monitor SLA violation:- In order to make sure the service provider is keeping its promises, this stage entails routinely checking the service level objectives. Any violations should be reported and dealt with right away if they are found.
5. Terminate SLA:- The SLA may be terminated if the service provider is unable to reach the service level goals or if the organisation is dissatisfied with the service received. Mutual consent or the imposition of consequences for noncompliance can accomplish this.
6. Enforce penalties for SLA Violation:- Penalties may be enforced in accordance with the terms of the contract if the service provider is found to be in violation of the SLA. These sanctions may take the form of monetary fines, lowered service level goals, or agreement termination.

Advantages of SLA

1. Improved communication:- SLAs, which specifically define the level of service that a customer may anticipate, offer a better foundation for communication between the service provider and the client. This can guarantee that everyone is discussing service expectations in the same terms.
2. Increased accountability:- Customers have a mechanism to hold service providers responsible if their services fall short of the established level thanks to SLAs. They also expect service providers to give a certain standard of service.
3. Better alignment with business goals:- By defining the performance objectives and service level standards that the service provider must meet, SLAs ensure that the service provided is in line with the client's objectives. 
4. Reduced downtime:- By establishing defined processes for issue management and resolution, SLAs can aid in limiting the effects of service interruptions.
5. Better cost management:- SLAs can aid in cost control by outlining the level of service that the client can count on and provide a mechanism to monitor and assess performance. This makes it simpler to ensure that customers are receiving the most value for their money.

Disadvantages of SLA

1. Complexity:- SLAs may need large resources to implement and enforce, and they may be difficult to create and manage.
2. Rigidity:- SLAs may not be flexible enough to adapt to shifting business needs or service requirements since they are rigid.
3. Limited service options:-  SLAs may restrict the types of services that a client can choose from because the service provider may only be able to provide those that are specified in the contract.
4. Misaligned incentives:- SLAs may cause incentives between the service provider and the client to be out of balance since the provider may be more concerned with meeting predetermined service standards than with offering the best possible service.
5. Limited liability:- SLAs frequently limit the liability of the service provider in the event of service failure and are not legally enforceable contracts.