An SLA is a type of contract (even if it`s called an agreement) and therefore contract law is the most applicable law. Contract law is mainly based on customary law (such as case law). There are many current cases involving things such as: « In practice, any lawsuit in our courts to force the service provider to execute or even force the customer to pay is a long and expensive process. An SLA is a tool for building a good relationship and should not be seen as a weapon against the other party, » Giles warns. Therefore, the clear and careful structuring of an SLA is crucial. Because service levels can be beneficial to the customer, service levels can`t: CIOs need to know (and weigh carefully) various things when signing a service level agreement, such as .B. Warranties, indemnities, liability, remedies and penalties for violations. The duties and responsibilities of each party to the agreement should also be defined. You must ensure that a description of the service is also included, as well as the standard by which the services must be provided. Negotiating service levels involves a trade-off between the ideal list of customer requirements and the need to prioritize them in terms of what is realistically achievable. Performance measurement can involve significant negotiations.
A balance must be struck so that the desired level of performance can be achieved without imposing such tight restrictions on the service provider that they hinder the development of a creative and effective working relationship. « Service level agreements proposed by the service provider tend to be one-sided. CIOs need to hire trusted advisors to ensure the inclusion of clients` specific interests in the SLA. Derogation clauses are crucial. « Early termination of contracts when service levels are not met is crucial, as are provisions to manage the transition to new service providers and the mandatory cooperation of the incumbent service provider. The customer is highly dependent on IT for business operations, and it is essential to ensure business continuity. Careful specification of events that trigger risks is essential for early detection and mitigation. If you are in business providing a service to a customer, this is your main agreement. If there`s an agreement you need, a service level agreement is the right one. This SLA is fully compliant with South African law. There are very few Acts of Parliament that are applicable.
However, if the person receiving the goods or services as a consumer, the Consumer Protection Act (CPA) applies. The PCA requires that the ALS be written in clear and understandable language and do not contain prohibited clauses. Over many years of preparing service level agreements, we have selected and included in this service level agreement template all the best possible arrangements to effectively manage the relationship between you and your customers by providing services to them. Our service level agreement template provides a cost-effective way to govern almost every aspect of a service level agreement by providing a clear picture at the beginning of the service level agreement that allows you to customize the parts of the agreement that you want to include, exclude, or modify. Add this service to your cart, proceed to checkout and pay R980.00 A combination of legal and technical skills is required to create the necessary requirements. We are legal experts and understand technology and the ICT sector, which puts us in an excellent position to draft a service level agreement for information technology services. Typically, we draft a service level agreement that consists of two components, but it can contain them all in one document: « Avoid complex penalty clauses. Penal provisions usually include complex formulas to calculate with little demand on how to apply the formula. The end result is the unavailability of a reasonable remedy in the event of non-performance by the Service Provider. Often, there are disputes over the calculation of penalties, which exacerbates the problem. CIOs must ensure appropriate risk management through sustainable punitive structures.
Pria Chetty, Founder and Director of Technology Law and Policy Advisory Service EndCode, said: « Applicability presents two major challenges. The first is that the accountability framework is unclear. Service levels must be specified in plain language that can be translated into daily tasks. Generic SLAs, especially in the field of IT services, do not provide the necessary assurances. One of the most commonly used terms in the IT industry, even among IT professionals and sometimes even lawyers, is « SLA » or « Service Level Agreement. » Not all IT contracts are service level agreements, although the term is loosely and incorrectly used to describe almost all types of IT contracts. We distinguish service level agreements from terms and conditions/contracts/agreements. Both can usually contain common elements such as model clauses, warranties, indemnities, liability provisions, force majeure, etc. However, an agreement that does not include certain specific elements is not a service level agreement. In many business cases, you can provide services to a customer. This relationship is best regulated by a so-called service level agreement. Yes, they are theoretically enforceable in our courts, but in practice, any lawsuit in our courts to force the service provider to perform is a long and expensive process.
Or even to force the customer to pay. The better a service level agreement, the more likely it is to be enforceable. A terrible SLA is probably unenforceable. But an SLA is a tool for building a good relationship, and should not be seen as a weapon against the other party. Chetty comments: « Escalation clauses are crucial for the CIO. CIOs are often extracted from day-to-day collaboration with IT service providers. The CIO needs to know when service delivery and performance issues need to be escalated to him. A good SLA accurately records the common understanding between the service provider and the customer. It must be written for the parties and not for a judge in the event of a dispute.
The purpose of a service level agreement is not to be able to assert your rights in court, but rather to try to ensure a positive friendly relationship in which the customer receives services at the level they need. And in addition, the provider knows what his tasks are. In an industry that provides services to parties who may or may not have a thorough understanding of the services provided and the technologies provided, Service Level Agreements (SLAs) are common ground where terms of engagement can be clearly defined. SLAs are not universal contracts – each must be negotiated specifically to take into account the service provided, the customer`s specific needs and requirements (such as regulations or laws), and the level of service acceptable to all parties. Our unique table at the beginning of the agreement allows you to tailor the service level agreement to your needs An SLA is, according to Michalson`s SLA guide (www.michalsons.co.za/service-level-agreement-sla/4610), « an agreement that describes the services (not goods) that one company provides to another company. When goods are supplied, an SLA is not the right agreement. It`s a kind of contract and in the IT context, it`s an IT contract. ENSafrica`s TMT team is at the forefront of advising clients on all service level agreements, technology contracts and transaction requirements. We also provide regular training to clients (especially IT professionals and in-house legal teams) on all aspects of the technology contract, including drafting exceptional service level agreements. John Giles, managing attorney at Michalsons, says: « There is quite a bit of confusion in South Africa about service level agreements.
People seem to have different ideas about who they are and why they should exist. There are many types of service level agreements, which confuses the problem. SLAs are designed to determine what service a customer can expect, when, how, how often there may be downtime, and what corrective action can be taken if the provider fails to deliver on one of its promises. In reality, these are often confusing and complicated documents that do not help either the service provider or the customer to manage the relationship, especially in the event of a problem. A service level agreement (or SLA) is a useful tool for managing the relationship between a service provider and its customer. These are often IT services provided by an IT provider to a customer. There is some confusion in South Africa about service level agreements. Different people seem to have different ideas about who they are and why they should exist. There are many types of service level agreements, which confuses the problem.
We thought we`d lay out our understanding of an SLA and give advice on how to do it right. You can also attend a workshop on service level agreements. It is often said, « What cannot be measured; does not exist » – the services are no different. The difference between receiving or providing good service versus no service is capacity: a service level agreement describes the services (not goods) that one company provides to another company. When goods are supplied, an SLA is not the right agreement. It`s a kind of contract and in the IT context, it`s an IT contract. We will write more about the difference between an agreement and a contract another time. To create a functional SLA, you must define the following: Once service levels are determined, it is necessary to deal with the effects of non-compliance and the amount of compensation must be defined. .