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A Service Level Agreement (SLA) is a written contract that establishes the minimum service standards required from a service provider. SLAs are distinct from Key Performance Indicators (KPIs), which assess the provider's performance against specific targets. An SLA outlines the minimum service level and details actions to be taken if this standard is not met, often including financial implications to compensate the client for losses due to underperformance. SLAs are routinely monitored to ensure compliance and to implement corrective measures as needed. For further insights on KPIs, refer to our related video on the topic.