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A Service Level Agreement (SLA) is a written contract that outlines the minimum service level a provider must deliver. It differs from Key Performance Indicators (KPIs), which assess a provider's performance against specific targets. SLAs define these minimum service levels and outline actions to be taken if they are not met, often including financial repercussions to compensate clients for losses due to underperformance. Regular monitoring of SLAs ensures that performance is tracked, allowing for corrective actions when necessary. For more information on KPIs, viewers are directed to another video on the channel.