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A Service Level Agreement (SLA) is a written contract that establishes the minimum service standards required from a service provider. Unlike Key Performance Indicators (KPIs), which gauge performance against specific targets, SLAs focus on defining these minimum service levels and stipulate the actions to be taken if these standards are not met. This can include financial penalties aimed at compensating the client for losses due to underperformance. SLAs are regularly monitored to track service provider performance and ensure corrective actions can be implemented when necessary.