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Learn Why the SLA Is So Important for Service Providers

October 24, 2023 Useall

Learn Why the SLA Is So Important for Service Providers

Caring about customer satisfaction is essential for a company to succeed and stay competitive. In this context comes the SLA, or Service Level Agreement, which can benefit companies of every size and field by formalizing customer expectations, among other aspects.

In this article, we explain what an SLA is, why it matters for service providers, and what information must be included in the document. Stay with us and enjoy the read!

The importance of the SLA for service providers

The importance of the SLA lies in the fact that it formalizes mutual expectations, establishing quality standards and guidelines to steer the execution of the work. The document therefore brings security to both parties, whether it is a long-standing business relationship or an agreement with a new partner.

The document matters not only to the service provider but to the contracting party as well. The client can, for example, use it to define penalties in case the agreement is breached, which can take the form of fines or even a discount on the final price of the service.

The service provider, in turn, has the guarantee that payment for completed work will be made, respecting deadlines and conditions. The SLA also protects the provider from potentially abusive behavior or improper changes on the client's side.

What should an SLA include?

Now that you understand what an SLA is, why it matters, and the benefits tied to its use, it is time to implement it in your company's transactions. To do so, consider the following information:

Pricing: specification of the costs associated with the service;

Service delivery deadlines: definition of the timeframes for providing the service;

Customer support channel: indication of the communication channels for support requests;

Problem resolution timeframes: determination of the maximum deadlines for resolving incidents;

Performance targets: establishment of goals to evaluate service performance;

Security standards: specification of the applicable security requirements;

Report delivery: definition of the periodic reports to be provided;

Service quality level: clarification of the quality standard agreed between the parties.

In Brazil, service agreements do not need to be notarized to be legally valid. However, notarization is an additional layer of security for the negotiation, preventing one of the parties from claiming a forged signature, for example. So it is up to those involved.

Even though hiring a lawyer is not required to draft a contract, legal counsel can provide technical support throughout the process. These professionals bring clarity and credibility to the document — something important in business transactions.

In addition, professionals with legal training have the experience to anticipate situations that might occur and include them in the terms, avoiding headaches down the road.

See how the SLA is much more than a list of deadlines? When well crafted, the document becomes a strategic pillar that promotes alignment between the parties and mutual satisfaction. Service providers should adopt it, because it goes beyond a mere contractual formality — it is a guarantee of security for everyone.

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Originally published in Portuguese at useall.com.br.