Service Level Agreement (SLA) Definition

A Service Level Agreement (SLA) is a formal contract between a service provider and a client that specifies the agreed-upon level of service, performance metrics, responsibilities, and remedies in case of non-compliance. It serves as a legally binding document that outlines the services to be delivered, the desired quality standards, and the consequences if those standards are not met.

See more: Understanding Service Level Agreements: Definition, Meaning, and Examples

Key Performance Indicator (KPI) Definition

A Key Performance Indicator (KPI) is a quantifiable measure used to evaluate the success or progress of a specific activity, process, or objective within an organization. KPIs are used to track and assess performance against predetermined targets or goals.

Key Differences between SLAs and KPIs

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Conclusion

While SLAs focus on defining service levels and responsibilities between two parties, KPIs are broader performance measures used within an organization to track progress and make data-driven decisions. KPIs can be used to monitor SLA compliance, but they also encompass various other aspects of an organization's operations and objectives.