Service level agreements (SLAs) are a list of objectives, services, and responsibilities a customer can expect suppliers or managed services providers (MSPs) to provide. SLAs also include metrics for measuring the accuracy and extent to which MSPs provide those services as well as potential penalties if the levels of service specified by the agreement aren’t maintained. While SLAs are typically negotiated between customers and service providers, it’s not unheard of for departments within the same company to create their own service agreements.

Read more: SLA Based Management

SLAs are especially important for MSPs, since they help to ensure you’re meeting your agreed-upon responsibilities—while also protecting your business in case a customer asks for services that exceed those outlined in the agreement. SLAs can also specify responsibilities on the part of the customer as well, such as ensuring a representative is available to help address issues pertaining to the service agreement.

There are several commonly used metrics that measure the success or efficiency of SLAs—and these can be effectively managed by certain SLA tools and software solutions. So here are a few things to keep in mind before you start negotiating service agreements.