It is now a common practice among establishments entering into business partnerships with other establishments to have a service level agreement.  A service level agreement is very important because it the part of your contract wherein the level of your and your partner’s obligations are formally described and enumerated.  This is most important especially in service level agreement for applications where various programs from different software companies are involved.  Service level agreement for applications usually involves one service provider and the customer.

The service provider is the one responsible for the online connectivity of the customer.

Service level agreements for applications require the both parties to clearly state the performance measurement of each application.  This usually contains specific information on services, like the scope of its responsibility, the various services that are going to be offered (and again the scope of the services that are going to be offered), among others.  Service level agreements also contain information on the penalties if ever these parameters are not met.  The calculation of the penalty shall also be based on the agreement.

It should be understood that before the service level agreements for applications can be binding, each party should agree to the conditions and stipulations stated in the agreement.  The customer should make available all resources needed by the service provider and the service provider should be able to provide the necessary services needed by the customer. 

Service level agreements for applications require the customer to be responsible for the creation of the account, the password security, payment of dues, information exchange, review, and many more.  At the same time, service providers are expected to be responsible for the availability of the application, the limited congestion, restoration of service, committed speed of connection and the like.

With businesses growing everyday, service level agreements have become widely popular especially with the outsourcing of much of the companys services.  Having this contract will help the organization in improving its business.


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