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A Service Level Agreement (SLA) is a written contract that specifies the minimum service levels expected from a service provider. Unlike Key Performance Indicators (KPIs), which assess performance against targets, SLAs outline the required service standards and the actions to be taken if these standards are not met. This may include financial penalties aimed at compensating clients for losses due to underperformance. SLAs are regularly monitored to ensure compliance and prompt corrective measures when necessary. For further insights into KPIs, viewers are encouraged to check out a related video on the channel.