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A Service Level Agreement (SLA) is a written contract that establishes the minimum level of service a service provider must deliver. Unlike Key Performance Indicators (KPIs), which assess performance against specific targets, SLAs outline the baseline services required and the repercussions for failing to meet these standards. They typically include measures for monetary compensation to clients for losses due to underperformance. SLAs are regularly monitored to ensure compliance and enable the implementation of corrective actions when necessary. For more on KPIs, viewers can refer to another video on the channel.