Any meaningful contract without associated ALS (verified by legal advisors) is open to deliberate or involuntary interpretations. AlS protects both parties in the agreement. Include a brief presentation of the agreement on the parties, the level of service and the duration of the contract. For example, the service the customer receives as a result of the service provided is at the heart of the service level agreement. In the case of clearly defined penalties, the customer feels properly compensated and the discontent is stopped. Compensation also becomes an important KPI for the supplier to measure the capacity and productivity of its team. This helps them improve service, retain existing customers and gain new credentials. Customers can create common metrics with multiple service providers that take into account the multi-supplier impact and impact the creditor may have on processes that are not considered to be in compliance with the contract. Overall, an ALS generally contains a list of objectives, a list of services that must be covered by the agreement, and a definition of the responsibilities of the service provider and clients under ALS. Most service providers provide their service level statistics via an online portal.

In this way, customers can check whether the right level of service is being met. If they can`t find it, the portal also allows customers to see if they are entitled to compensation. Key Performance Indicators (KPI): An important aspect of each ALS is measuring supplier performance. KPIs should be clearly mentioned for the assessment of service levels. Some KPIs are: Turn Around Time (TAT), First Contact Resolution (FCR), Closure Rate (CR), number of cases handled, etc. Description of the purpose of the contract and the objectives. A Service Level Contract (SLA) defines the level of service a customer expects from a provider and defines the metrics on which that service is measured and corrective actions or penalties, if they exist, if agreed service levels are not met.