An Service Level Agreement (SLA) is a contract or addendum to a contract that defines the type, value and
conditions of the outsourcing services to be provided. Typically, SLAs address
quality of service conditions, such as response time, availability, speed etc.
In essence, every outsourcing agreement is made up of three basic elements: a
description of the services to be performed; a scorecard or SLA defining in
objective, measurable terms the standards for the delivery of each service, and;
a pricing formula for how the service provider will be compensated.
Service Level Agreement