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A Service Level Agreement (SLA) is a written contract that establishes the minimum service level required from a service provider. It differs from Key Performance Indicators (KPIs), which are metrics for evaluating a provider's performance against specific targets. An SLA outlines the expected minimum service standards and specifies actions to be taken if these standards are not met, often including financial compensation for the client due to underperformance. SLAs are regularly monitored to ensure compliance and allow for corrective measures when necessary. For more insights on KPIs, viewers are encouraged to check out another video on the channel.