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A Service Level Agreement (SLA) is a written contract that outlines the minimum level of service expected from a service provider. It is different from Key Performance Indicators (KPIs), which assess performance against specific targets. An SLA defines the required service standards and outlines the actions to be taken if these standards are not met, often including financial penalties to compensate the client for losses due to underperformance. SLAs are regularly monitored to ensure compliance and to track performance, enabling corrective measures to be implemented as necessary.