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A Service Level Agreement (SLA) is a written contract that outlines the minimum service standards required from a service provider. Unlike Key Performance Indicators (KPIs), which assess performance against specific targets, SLAs define minimum service levels and stipulate actions to be taken if these standards are not met. These actions often include financial penalties to compensate the client for losses due to underperformance. SLAs are regularly monitored to track service performance and initiate corrective measures when necessary. For further details on KPIs, refer to the separate video available on the channel.
