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A Service Level Agreement (SLA) is a written contract that stipulates the minimum level of service required from a service provider. It includes mechanisms to measure performance, often through Key Performance Indicators (KPIs). While KPIs assess a provider's performance against specific targets, SLAs define the expected service level and outline actions to be taken if these standards are not met, which may involve financial compensation for the client due to losses incurred from underperformance. Regular monitoring of SLAs ensures that performance is tracked and any necessary corrective actions are implemented.
