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A Service Level Agreement (SLA) is a written contract that specifies the minimum level of service a service provider must deliver. It differs from Key Performance Indicators (KPIs), which measure a provider's performance against specific targets. SLAs outline the required service standards and detail the actions to be taken if these standards are not met, often including financial penalties to compensate clients for losses due to underperformance. Regular monitoring of SLAs ensures that performance is tracked, allowing for necessary corrective actions to be implemented. For further information on KPIs, viewers are encouraged to check out another video on the channel.