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A Service Level Agreement (SLA) is a written contract that outlines the minimum service levels required from a service provider. It is distinct from Key Performance Indicators (KPIs), which assess a provider's performance against specific targets. SLAs establish what constitutes acceptable service and provide a course of action if these standards are not met, often including financial compensation for the client due to losses from underperformance. Regular monitoring of SLAs is essential to track performance and implement corrective measures when necessary.
