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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 includes mechanisms to measure performance, often referred to as SLAs or Key Performance Indicators (KPIs), which assess the provider against specific targets. An SLA specifies the minimum service levels and the course of action if these levels are not achieved, often involving financial reimbursement for the client due to underperformance. SLAs are regularly monitored to track service performance and ensure corrective actions are taken when necessary. For more information on KPIs, viewers are encouraged to check out an additional video on the channel.