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A Service Level Agreement (SLA) is a written contract that specifies the minimum service levels expected from a service provider. Unlike Key Performance Indicators (KPIs), which measure performance against specific targets, SLAs define the minimum standards of service and outline procedures for addressing any shortfalls. This can include monetary penalties aimed at compensating the client for losses due to underperformance. SLAs are regularly monitored to ensure compliance and facilitate corrective actions when necessary. For more information on KPIs, refer to the corresponding video on our channel.