SLA Template - Free Service Level Agreement Download & Guide

A Service Level Agreement (SLA) documents the agreed-upon quality, availability and support standards between a service provider and a customer for an IT service. Without a clear SLA, expectation gaps arise that lead to dissatisfaction, escalations and contractual conflicts. This template provides a complete structure for drafting an SLA that protects both parties. The document starts with the scope and service description, followed by measurable KPIs for availability (uptime), response times for different priority levels and resolution times per incident category. The template includes formulas for calculating monthly availability and a service credits section describing what compensation the customer receives when the agreed levels are not met. Additionally, the document contains sections for the escalation process with clear contacts per level, reporting obligations with frequency and format, exclusions that fall outside the SLA, and the review and amendment procedure. By clearly documenting these agreements you prevent after-the-fact disputes and create a transparent foundation for the partnership. The template is suitable for both internal SLAs between IT and the business as well as external SLAs with customers or vendors.

Variations

How to use

Step 1: Define the scope of the SLA by clearly describing which services are covered and which explicitly are not. Avoid vague language and use concrete service names, systems and features. Step 2: Describe the service in detail: what is delivered, how it is delivered, which supporting processes are included and what the normal availability hours are (for example 24/7 or business hours). Step 3: Define measurable KPIs. The most common are: availability percentage (for example 99.9%), maximum response time per priority (P1: 15 minutes, P2: 1 hour, P3: 4 hours, P4: next business day) and maximum resolution time per priority. Step 4: Establish the measurement methodology. Describe how availability is measured (which monitoring, which measurement points), how response times are counted (from the moment of reporting or detection) and which periods fall outside the measurement (scheduled maintenance, force majeure). Step 5: Define the escalation process with contacts per level. Describe when an incident escalates to the next level, who is informed and what actions are taken at each escalation level. Step 6: Describe the service credits arrangement. Document what percentage of the monthly fee is credited when the agreed availability is not met. Use a tiered table so compensation increases as the deviation grows. Step 7: Define the reporting obligations: which reports are delivered, how often (monthly, quarterly) and in which format. Describe which KPIs are included in the report and who receives it. Step 8: Document the review and amendment procedure. Describe how often the SLA is reviewed (typically annually), who participates in the review and how changes are implemented and accepted by both parties. Step 9: Add an exclusions section: situations that fall outside the SLA such as force majeure, scheduled maintenance outside business hours, outages caused by the customer or third parties, and changes requested by the customer. Step 10: Have the SLA legally reviewed by both parties before signing. Ensure the definitions, measurement methods and compensation arrangements are unambiguously formulated to prevent interpretation issues. Step 11: Implement the monitoring necessary to actually measure the agreed KPIs. An SLA without measurement instruments is unenforceable. Step 12: Schedule the first monthly reporting review to verify the reporting matches the agreements and that all parties interpret the figures the same way.

How MG Software can help

At MG Software we help clients and service providers draft SLAs that are fair, measurable and enforceable. We bring experience from dozens of SLA engagements and know which agreements work in practice and which lead to conflicts. Our consultants guide the entire process: from defining the right KPIs to setting up monitoring and reporting. We ensure the SLA is not just a legal document but a workable instrument that strengthens the partnership. Additionally, we help implement dashboards and automated reports so SLA compliance is continuously visible to both parties without manual reporting overhead. Our approach starts with a joint workshop where both parties express their expectations and we translate these into concrete, measurable commitments. We advise on realistic availability levels based on the chosen infrastructure and help construct the service credits table so the compensation model is proportional. After signing we guide the implementation of the monitoring tooling and verify that measurement results align with the definitions in the SLA. During the first quarterly review we evaluate together whether the reporting matches day-to-day operations and adjust the KPIs where necessary.