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A Service Level Agreement (SLA) is a written contract that outlines the minimum service standards required from a service provider. It differs from Key Performance Indicators (KPIs), which assess performance against set targets. An SLA specifies the minimum service expectations and includes measures for addressing situations when these standards are not met, often involving financial compensation to the client for losses due to underperformance. SLAs are monitored on a regular basis to track performance and implement corrective actions as necessary. For more insights on KPIs, viewers are encouraged to check out a related video on the channel.