This External Service Level Agreement (SLA) provides a detailed framework to
establish legally binding service levels with external providers (vendors). This SLA can
be included with a service contract to formally define what service is to be provided.
This agreement is essential to specify the desired measurable service level standards
early in vendor negotiations. This document can be used by small businesses and
should be attached to legal contracts between a company and an external service
provider to ensure proper service levels.
External Service Level Agreement
Project Title
What is the External Service Level Agreement?
The External Service Level Agreement (SLA) provides a detailed framework to establish
legally binding service levels with external providers (vendors). This document should
be attached to legal contracts between - and external service providers.
The objectives of the external SLA are:
To help teams to specify the desired measurable service level standards early in
vendor negotiations and to treat the service level agreement as a crucial part of the
overall negotiations. It is more advantageous for - if our internal teams have thought
through the desired service levels and effectively set the agenda by submitting the
Service Level Agreement rather than starting with the Service Provider's proposed
agreement.
To assist operational teams working with their counterparts at the Service Provider
firm to document operational processes, monitoring thresholds, business continuity
plans, etc.
To help teams focus on the key measurable service level standards that are critical
to the success in delivering a service to - customers. These performance measures
will be legally binding and can require actions and remedies from the Service
Provider if the Provider fails to meet them.
Representatives from Procurement, and Legal have approved the language indicated in
BLACK in this document. You should check with your respective Procurement and
Legal partners when making modifications to this language.
The quality tools that support the creation of this document are:
Improvement Path Tools:
FMEA
SEAM
Development Path Tools:
FMEA
SEAM
NOTE: When using this document, the portions in blue italics are instructional
only and should be removed. The portions in Black represent approved language
for use in External Service Level agreements.
Project Title
External Service Level Agreement
Table of Contents
I. Background .............................................................................................................................................. 4
A. Description ................................................................................................................................ 4
B. Constraints ................................................................................................................................ 4
C. Agreement Maintenance ........................................................................................................... 4
II. Definitions ................................................................................................................................................ 5
III. Business / Service Overview ................................................................................................................ 7
A. Hours of Operation and Service Maintenance .......................................................................... 7
B. Service Support Contacts ......................................................................................................... 7
C. Performance Reports ................................................................................................................ 8
IV. Service Level Standards ....................................................................................................................... 8
A. Service Availability .................................................................................................................... 8
B. Transaction Response Time ................................................................................................... 10
C. Problem Management............................................................................................................. 12
D. Technical Support Response Time......................................................................................... 15
E. Processing Deadlines ............................................................................................................. 16
F. Change Management Standards ............................................................................................ 18
G. Limitation on Liquidated Damages ......................................................................................... 20
V. Approval / Contact Information ........................................................................................................... 20
VI. Appendices .......................................................................................................................................... 22
Revision History
No. Date By Reason
Page 3 of 23
Project Title
External Service Level Agreement
I. Background
This information may be obtained from the Project Charter.
A. Description
The service level management process should lead to improved communications between the SLA
parties, particularly about service level expectations, as well as improved service performance. These
are the two k