A Service Level Agreement (SLA) formally defines the standard of IT service delivery, setting measurable commitments for availability, response times, and resolution times. Well-defined SLAs align expectations between IT and the business, provide accountability, and form the basis of meaningful service reports.
SLA vs OLA vs UC - Key Definitions
| Document | Between | Purpose | Example |
|---|---|---|---|
| SLA (Service Level Agreement) | IT provider and business customer/user | Defines the level of service the customer can expect | IT helpdesk responds to P2 incidents within 2 hours |
| OLA (Operational Level Agreement) | IT teams internally | Defines how internal IT teams support each other to deliver the SLA | Networking team resolves VPN issues within 1 hour to support the 2-hour SLA |
| UC (Underpinning Contract) | IT provider and external supplier | Third-party commitments that underpin the SLA delivery | ISP resolves internet outages within 4 hours |
SLA (Service Level Agreement)
- Between
- IT provider and business customer/user
- Purpose
- Defines the level of service the customer can expect
- Example
- IT helpdesk responds to P2 incidents within 2 hours
OLA (Operational Level Agreement)
- Between
- IT teams internally
- Purpose
- Defines how internal IT teams support each other to deliver the SLA
- Example
- Networking team resolves VPN issues within 1 hour to support the 2-hour SLA
UC (Underpinning Contract)
- Between
- IT provider and external supplier
- Purpose
- Third-party commitments that underpin the SLA delivery
- Example
- ISP resolves internet outages within 4 hours
Full SLA Template
IT SERVICE LEVEL AGREEMENT (SLA) Document No: SLA-[XXX] | Version: 1.0 | Effective Date: _______ | Review Date: _______ PARTIES Service Provider: [IT Department / MSP Name] Service Recipient: [Business Unit / Organisation Name] SLA Owner: [IT Manager / Service Delivery Manager] 1. PURPOSE AND SCOPE This SLA defines the service levels provided by [IT Provider] to [Business] for the following services: [e.g. End-user IT support, Server management, Network operations, Cloud management] 2. SERVICE HOURS Standard Support Hours: Monday–Friday, 08:00–18:00 GMT Extended Support Hours: [Define if applicable, e.g. 07:00–22:00 for critical teams] Out-of-Hours Emergencies: P1/P2 incidents - 24/7/365 via on-call: [contact] 3. INCIDENT CLASSIFICATION AND RESPONSE TIMES Priority | Definition | Response | Resolution Target ---------|--------------------------------------------------|----------|------------------ P1 - Critical | Complete service outage, business stop | 15 min | 4 hours P2 - High | Major function unavailable, workaround needed | 1 hour | 8 hours P3 - Medium | Service degraded, limited impact | 4 hours | 2 business days P4 - Low | Minor issue, cosmetic, enhancement request | 8 hours | 5 business days 4. SERVICE AVAILABILITY TARGETS Core Infrastructure: 99.9% uptime (max 8.7 hours downtime/year) Business Applications: 99.5% uptime (max 43.8 hours downtime/year) Development/Test: 95% uptime during business hours Scheduled Maintenance: Sunday 01:00–05:00 (excluded from availability calculations) 5. REQUEST FULFILMENT New User Setup: 3 business days Software Installation: 2 business days Access Rights (standard): 1 business day Access Rights (privileged): 3 business days (includes approval workflow) Hardware Procurement: 10 business days 6. EXCLUSIONS This SLA does not cover: - Incidents caused by customer-initiated changes without IT involvement - Third-party SaaS outages beyond IT control (Microsoft 365, Google, Salesforce) - Force majeure events - Hardware failure beyond manufacturer warranty period (covered under separate UC) 7. REPORTING IT will provide a monthly service report including: - SLA adherence % per priority band - Total ticket volume by type and priority - Customer satisfaction score (CSAT) - Top 5 recurring issues and improvement actions 8. REVIEW AND ESCALATION - Monthly service review meeting between IT Manager and Business stakeholder - SLA reviewed annually or on significant service change - Persistent SLA breaches escalated to CTO within 30 days of first breach
Response & Resolution Time Reference
| Priority | Response Time | Resolution Time | Example Incidents |
|---|---|---|---|
| P1 - Critical | 15 minutes (24/7) | 4 hours | Complete email outage, all VPN down, ransomware active, payment system failure |
| P2 - High | 1 hour (24/7) | 8 hours | VPN down for department, email intermittent, core system slow (>50% users affected) |
| P3 - Medium | 4 hours (business hours) | 2 business days | Printer not working, one person's VPN failing, slow Wi-Fi in meeting room |
| P4 - Low | 8 hours (business hours) | 5 business days | Password reset, new software request, screen orientation issue, new monitor setup |
P1 - Critical
- Response Time
- 15 minutes (24/7)
- Resolution Time
- 4 hours
- Example Incidents
- Complete email outage, all VPN down, ransomware active, payment system failure
P2 - High
- Response Time
- 1 hour (24/7)
- Resolution Time
- 8 hours
- Example Incidents
- VPN down for department, email intermittent, core system slow (>50% users affected)
P3 - Medium
- Response Time
- 4 hours (business hours)
- Resolution Time
- 2 business days
- Example Incidents
- Printer not working, one person's VPN failing, slow Wi-Fi in meeting room
P4 - Low
- Response Time
- 8 hours (business hours)
- Resolution Time
- 5 business days
- Example Incidents
- Password reset, new software request, screen orientation issue, new monitor setup
What’s next?