AlS should have two components: services and management. Many SLAs follow the specifications of the Information Technology Infrastructure Library when applied to IT services. Service credits are useful in encouraging the service provider to improve performance, but what if the service is significantly below the expected level? If alS includes only one benefit credit plan, the client may be able to pay for an unsatisfactory overall benefit (albeit at a reduced rate), unless the service provided has been bad enough to constitute a substantial violation as a whole. The solution is to include a client`s right to terminate the contract when service delivery becomes unacceptable. Therefore, ALS should include a critical level of service defect below which the service provider has that right to terminate (and the right to sue for damages). If z.B. Service credits come into effect, if a level of error has occurred twice in a given period, alS may indicate that the customer has the right to terminate the contract for significant violations, for example if the level of service has not been reached during the same period. As with service credits, each level of service must be considered separately and weighted according to the size of the business. In the case of an online service, the availability of this service is essential, so you can expect that the right to terminate occur sooner than if routine reports are not provided on time. In addition, alS could consolidate certain levels of service for the calculation of service credits and the right to terminate in the event of a critical failure; SLAs sometimes contain aggregate point assessment systems for these purposes. [PARTY B].

In order for ALS to have a “bite,” the non-level of service must have financial consequences for the service provider. More often than not, the integration of a service credit system is the most common way to achieve this. In essence, the service provider pays the customer an agreed amount that should be used as an incentive for performance improvement if the service provider does not meet or credit the agreed service standards. These service credits can be measured in different ways. Like what. B, if the 99.5% level for reports is not met, ALS could include a service credit, which is granted some price reduction for each performance gap of 0.5% per week. Service credits may also be granted if z.B. three or more errors occur to complete a level of service over a period of time.

Here too, each level of service must be considered individually and a reasonable level of credit must be agreed between the service provider and the customer if the agreed level is not reached over a period of time. It is important that the service credits are adequate and that they encourage the provider to do better and that they enter early enough to make a difference. A survey of 389 IT decision-makers in the UK, Germany, France, the United States and China found that IT services on average 26% of the time do not comply with service level agreements with the company. The report stated that measuring the quality of services is not as automated as it could be and that most companies do not understand the value of monitoring the end-user experience or its implementation.