it outlines acceptable levels of service and compensations.3 min read a software service level agreement (sla) is a contract between your business and your it supplier. the sla outlines acceptable levels of service as well as compensation you would receive if the supplier fails to provide those services. it’s important to note that the sla is a legally binding document, so its terminology can be complex and confusing. more than that, slas are written with the supplier’s best interests in mind, making it essential to review the sla carefully and seek legal advice, if needed, to ensure the it contract meets your needs. as such, the sla plays a critical role in defining the nature of the relationship between your business and its it provider.