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A Service Level Agreement (SLA) is a written contract that outlines the minimum service standards a service provider must meet. Unlike Key Performance Indicators (KPIs), which evaluate provider performance against specific targets, SLAs define required service levels and specify actions if these levels are not achieved, often including monetary compensation for the client’s losses due to underperformance. Regular monitoring of SLAs ensures that provider performance is evaluated and necessary corrective measures are taken to maintain service standards. For more information on KPIs, refer to our dedicated video on the topic.