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A Service Level Agreement (SLA) is a written contract that establishes the minimum required level of service from a service provider. It serves to define the baseline service expectations and outlines the course of action if these expectations are not met, often including financial penalties to compensate the client for losses due to underperformance. SLAs differ from Key Performance Indicators (KPIs), which assess a service provider's performance against specific targets. Regular monitoring of SLAs ensures that service levels are consistently tracked, allowing for corrective measures when necessary. For further insights on KPIs, refer to the related video on the channel.
