What type of agreement outlines specific terms under which a service is provided to the customer?

A service level agreement (SLA) is a formal document that delineates the expected level of service between a provider and a customer. This agreement specifies various critical aspects of the service, including quality metrics, responsibilities, and the consequences of failing to meet certain performance benchmarks. SLAs are essential for ensuring clarity and accountability in service delivery.

SLAs typically cover key performance indicators (KPIs) such as availability, response times, and resolution times, allowing both parties to have a clear understanding of their expectations. This clarity helps to foster a positive relationship between the service provider and the customer, as both parties can refer back to the SLA for guidance on obligations and commitments.

In contrast, while Standard Operating Procedures (SOPs) offer guidelines on the execution of specific processes, they do not explicitly define the service's terms between a provider and a customer. Operational Level Agreements (OLAs) focus internally within an organization, addressing the agreements between different teams about service delivery, and are not customer-facing. Underpinning contracts (UCs) typically support SLAs by detailing the services provided by third-party vendors but do not directly outline the specific terms related to customer delivery. Hence, the service level agreement is the most appropriate choice for outlining the terms of