SLA or Service Level Agreement is a negotiation formally done by two different parties. It is usually a contract that is signed by the client and a service provider or a contract between two service providers. It contains all the records of ordinary services regarding the services, warranty, guarantees, priorities, responsibilities and other aspect that is within the main objective that is to agree on all the levels of service. One good example of SLA is that it may identify the availability level, the services, operation and performance and all the other features of service such as the penalties in cases where there is a violation of the service level agreement, and the billing. In the past, service level agreements are used in the late 80s by operators of fixed line telecom as a section of their deal with the respective corporate client. Lately, the information technology departments venturing in bigger projects have been using the idea of SLA with all their clients that include the users coming from other departments but are within the same project to permit comparing of the quality of service delivered with the services that have been promised to the customers and also possibly consider the options of outsourcing services to any other company.

A service level agreement is basically more on the business side and does not focus on other features like technical details. SLA usually comprises sections to address the identification of the services, management of problems, duties of the customers, agreement during termination, measurement of performance, warranties and recovery from disasters.

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