Service level agreement (SLA)

A service level agreement (SLA) is a formal document that outlines the expected level of service from a provider to a client. 

An SLA defines the details of the services provided and measurable targets (e.g., response or resolution times) and holds the provider accountable for delivering services at the agreed-upon quality and timeframe.

For example, a company hires a TMC to handle business travel for its employees. The SLA may include responding to booking requests within 2 hours and 24/7 customer support, with a maximum resolution time of 4 hours for travel-related emergencies.

SLAs also provide a basis for resolving conflicts if service levels are not met, such as remedies, which may include financial penalties or service credits. 

The contract can be periodically reviewed to adapt to evolving business needs or technological advancements.