What is a Service Level Agreement In 2020?

A question like What is a service level agreement is what a company needs to come up with to succeed. Check out this post find out more. 

What is a Service Level Agreement In 2020?

Nowadays, many companies cannot afford to have an onboard IT support team or too large to handle all. IT operations or realize that IT is distracting them from their business.

Focus other businesses have mission-critical and cannot tolerate any downtime. Not to mention the cost of the whole IT department that goes up and up every day.

Service level management negotiates, agrees, and documents appropriate IT services. It targets the business representatives and then monitors and produces reports on the service providers’ ability to deliver the agreed level of service.

Example With The Pizza

Let’s look at a simple example of service level management. In this example, a person is ordering a pizza. Hello, I would like to request a large chicken pizza?

Sure, we will have your chicken pizza prepared and delivered in 30 minutes. Ok, thank you. See you in 30 minutes.

In this scenario, there is a mutual agreement between the customer and the service provider. Moreover, it calls a service level agreement. 

Both agreed on the 30-minute delivery time aligned. Hello, here is your chicken pizza.

Thank you for delivering the pizza within 30 minutes. Appreciate it.

Consider a scenario where the pizza did deliver late. Moreover, it took 50 minutes. For the pizza to be delivered, hey, it took 50 minutes for the pizza to be delivered. We agreed for the pizza to be delivered in 30 minutes.

I understand, and I apologize as a favor we will have this pizza delivered free of cost. We will ensure we give pizza on time henceforth for the pizza delivered on time.

What do You Learn In This Scenario?


  • Customer happy 
  • Service provider happy 
  • The service provider offered money for his service 

For the pizza delivered late 

  • One customer unhappy 
  • Service provider not happy 
  • Service provider suffered financial loss due to delay in delivery

Another Example

Let’s consider an example in our office space. Hello, service desk, I would like to have Microsoft Office installed in my computer.

The service desk responded that the software will be installed within two business days on the customer’s computer. In the event of an incident, incident resolution timelines agreed globally based on the incident’s priority.

The support desk expected to restore the incident within the agreed timelines. Also, based on the priority of the experience in both pizza and software installation examples, the content focused more on delivery timelines.

Service levels focused more on delivery timelines.

What is a service level agreement or SLA?

 SLA stands for service level agreement. Agreement meaning there is a mutual understanding of the delivery timelines in an IT industry.

This agreement forms a part of the contract. A contract signed between the customer and the service provider on the service levels.

This called service level agreement reports published to monitor the achieved service levels to the agreed service levels. In the contract, the metrics circulated to the customers. And other stakeholders hope we could provide some essential insights on service level management.

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