An ALS is a kind of contract (even if it is called an agreement) and contract law is therefore the most applicable right. Contract law is based primarily on the common law (such as case law). There are many current cases that have looked at things like: A good ALS accurately captures the common understanding between the service provider and the client. It should be written for the parties and not for a judge in the event of a dispute. The purpose of a service level agreement is not to be able to enforce your rights in court, but rather to try to ensure a positive friendly relationship in which the client obtains services at the level he or she needs. In addition, the service provider knows what its responsibility is. A combination of legal and technical skills is required to meet the needs. We are legal experts and we understand technology and the ICT sector, which puts us in a good position to develop a service level agreement for IT services. As a general rule, we design a service level agreement that consists of two components, but it can all be included in a document: Chetty Comments: “Escalation clauses are essential for the IOC. CIOS are often extracted from the day-to-day engagement with IT service providers. The IOC needs to know when service and performance issues need to get worse. A level of service agreement describes the services (not goods) that one company makes available to another company. When goods are delivered, an ALS is not the right contract.
It is a kind of contract and, in the IT context, an IT contract. We will write more about the difference between an agreement and a contract another time. To create a working ALS, you need to define: ALSs are not unique contracts – each must be negotiated specifically to take into account the services provided, the specific needs and requirements of the customer (such as regulation or legislation) and the level of service for all parties. “Avoid complex monetary clauses. Criminal provisions generally include complex formulas for calculating with few requests on how to apply the formula. The end result is the unavailability of an appropriate remedy against non-performance by the service provider. There are often disputes over the calculation of sanctions that exacerbate the problem. ICCs must ensure adequate risk management through sustainable sanctions structures. John Giles, executive counsel at Michalsons: “In South Africa, there is a lot of confusion about service level agreements. People seem to have different understandings of who they are and why they should exist. There are many types of service level agreements that baffle the problem. Once service levels have been determined, it is necessary to consider the effects of non-compliance with these levels of performance and determine the amount of compensation.
Negotiations often focus on the compensation the claimant must pay for lost benefits (whether in the form of penalties, service credits or damages). “In practice, any action in our courts to compel the provider to provide services, or even to require the client to pay, is a long and costly process. An ALS is a tool for building a good relationship and should not be seen as a weapon against the other party,” warns Giles.