The concept of SLA often pertains to IT services, but it can also be found in telecommunications (determining signal strength availability), customer service (waiting time on the line until the support agent answers the call), and many other industries where it is necessary to clearly define the supplier's obligations and parameterize them.

Key elements of an SLA agreement include:

• Service description - a clear description of the services provided, including scope, limitations, exclusions, and specifications,
• Performance metrics - measurable indicators subject to continuous monitoring and improvement, including:
  • Response time - the time it takes for the service provider to respond to a report,
  • Resolution time - the time needed to resolve an incident from the moment it is reported,
  • Availability - the percentage of time the service is available. High declared availability ensures uninterrupted access to key services, minimizing downtime (excluding maintenance periods, which may also be described in the agreement),
• Responsibility matrix - roles, communication channels, and responsibilities for both the client and the provider in processes such as escalation or SPOC (Single Point of Contact),
• SLO - Service Level Objectives - continuously monitored indicators that help determine if the SLA is being met. An example of an SLO might be the monthly incident resolution rate,
• Reporting mechanism - procedures for monitoring (what and how it is monitored) and what should be included in the reports presented to the client,
• General provisions defining the consequences for both parties in case of non-compliance with the contract terms (payment delays, failure to meet SLOs),

Having an SLA (Service Level Agreement) provides significant business benefits, especially in ensuring service continuity and minimizing the risk of losses associated with potential failures or downtimes. This agreement not only sets standards and expectations at an early stage of the project but also plays a crucial role in ensuring the operational and financial stability of the company.

Business benefits of an SLA:

1. Ensuring service continuity: SLA guarantees a certain level of service availability and performance, which is critical for businesses where every moment of downtime can mean financial loss. For example, a restaurant offering online orders could lose significant revenue during peak hours if the ordering system fails. With an SLA, the IT service provider commits to maintaining system availability, minimizing downtime and its negative impact on the business.
2. Avoiding consequences of failures: Under an SLA, service providers often offer quick incident response and repair procedures, significantly reducing the risk of prolonged downtimes. In the case of the aforementioned restaurant, a quick response and repair of the online ordering system could mean avoiding high costs associated with not being able to take orders.
3. Operational cost optimization: With an SLA, the company can better predict costs related to maintenance and technical support.
4. Building trust and relationships with the provider: Transparency resulting from clearly defined SLA terms builds client trust, making them feel safer knowing their service provider is committed to maintaining service continuity and quality.
5. If the SLA provider is also responsible for the maintenance and development of the system covered by the SLA, they will naturally strive to optimize these areas to minimize the risks associated with incidents.

What else to remember:

• SLA requires service providers to ensure technical readiness and specialist on-call duty, which means that these services are usually a significant cost item compared to other maintenance expenditures. Therefore, it is necessary to ensure that the scope and level of negotiated services correspond to the value that the process covered by the SLA brings to the company. For example, a client often expects very short response times for most types of events. This approach is, on the one hand, very costly, and on the other, it reduces the potential for effective response in the case of really significant failures. The foundation of a good SLA agreement is therefore the awareness of the system's business processes and their reliable prioritization.

• Complexity of negotiations and management: Developing an effective SLA agreement requires legal and technical knowledge on both sides, which can be challenging for companies without adequate internal resources. Negotiations can be time-consuming, and enforcing the conditions requires engagement from the client side as well.

• SLA agreements generally cover long periods. Launching such a service also requires engagement from both sides, granting permissions, access, etc. This means that changing the service provider can potentially be costly and may involve transitional periods when the process will not be protected at the expected level.

• Possibility of contract obsolescence: The dynamic nature of the market and software development requires SLAs to be flexible and adaptable to changing conditions. Lack of regular review and adjustments can result in an agreement that no longer meets current business needs or overlooks newly emerged elements.

The most important aspects of the SLA preparation process:

• identifying the parties responsible for delivering services, including external companies and end users
• defining the provided services, their scope, expected availability, performance, and other project specifications
• establishing performance metrics - measurable performance indicators and goals based on industry standards, best practices, and client expectations
• preparing a document containing the above points, remedial measures, response levels to specific events, and mechanisms for controlling the implementation of these tasks
• verification and negotiations - verifying the document with stakeholders, obtaining feedback, and negotiating financial terms as well as expected goals
• finalizing the document - preparing documentation, appointing contact persons, implementing monitoring, preparing report drafts, and starting to provide support

The SLA agreement is a key tool ensuring a productive and beneficial relationship between the provider and the client. Defining clear expectations, setting standards and responsibilities, as well as maintaining transparency in the SLA agreement helps build trust and long-term cooperation between partners. However, it should be remembered that the security that SLA provides depends largely on the effort and professionalism in developing the agreement.
When creating an SLA agreement, it is crucial to align the recorded requirements and business expectations with the potential consequences of incidents that may occur with them. Considering the continuous development of the business and the fact that SLAs are concluded for a longer period, it is good practice to regularly review the scope of the agreement and the relevant service categories.

Below we present a sample table containing basic SLA parameters:

Category	Scope	Response Time	Resolution Time	Operating Hours
Urgent	Complete service unavailability, sales processes are impossible in at least 50% of restaurants	15 min (confirmed by phone)	4h	9am-11pm all days
High	Partial service unavailability not causing sales stoppage, performance issues affecting the sales process	30 min	12h	9am-5pm working days
Normal	Product/set configuration issues, other performance problems	30 min	24h	9am-5pm working days

Example approach to incident resolution depending on the support provided:

Example incident: Incorrect prices, rejected transactions Scenario in best effort mode (no SLA, no dedicated response and resolution times):

1. Reporting the incident in the ticket system.
2. Due to the lack of specified response and resolution times and team availability, the issue will be addressed under warranty terms (up to 5 working days).

Scenario in SLA mode:

1. Reporting the incident in the ticket system.
2. The support team communicates with the client on a dedicated channel, informs about the high-priority report acceptance, and starts the analysis.
3. The support team informs on a dedicated channel (e.g. Teams) about the status of the work aimed at minimizing the impact or resolving the incident.
4. The support team prepares a temporary workaround or final resolution of the incident within the established response and resolution times.

The above scenarios illustrate the process of handling a sample incident and the level of engagement in delivering SLA service.

Challenges and costs associated with providing SLA support:

1. Constant team readiness:
   • The team must always be ready to meet client requirements and comply with the declared response and resolution times during specified hours.
2. Adjusting team size:
   • It is necessary to adjust the team size to the potential number of incidents and service requests.
3. Covering non-standard support hours:
   • Providing support on weekends, afternoons, and evenings.
4. Cyclic workshops and training:
   • Regular workshops to equalize the knowledge level within the team.
5. Project documentation:
   • Maintaining and cyclically reviewing and developing project documentation.

In summary, the SLA (Service Level Agreement) is a key element in the relationship between the service provider and the client, which allows precise definition of the level of services provided and the responsibilities of the parties. Thanks to SLA, clients can be sure that services will be provided according to established standards, and providers gain clarity of expectations and operational frameworks. Preparing an effective SLA agreement requires a detailed analysis of client requirements, precise definition of performance metrics, and transparent reporting and monitoring mechanisms. Regular reviews and adjustments of the agreement to changing business and technological needs are essential for maintaining its relevance and effectiveness. Properly formulated and managed SLAs bring mutual benefits, building long-term trust and operational stability.