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All IT leaders need to get the most from their service providers: Service Level Agreements (SLAs) serve as a key tool for doing just that. “[They] set the standard of service and the expectations for service providers,” says Amy Fong, vice president at Everest Group. “As IT is under greater pressure to deliver business outcomes instead of technical outcomes, SLAs are increasingly evolving to measure quantifiable business outcomes.” What is an SLA? An SLA specifies the level of service you expect, the metrics that will quantify that level of service, and remedies and consequences if the provider fails to meet those metrics.  Common SLAs include those with software vendors, cloud service providers, and outsourcing providers. IT leaders often also have internal SLAs – agreements with other functions in the organization.

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