What is the Difference Between SLA and OLA?

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The main difference between a Service Level Agreement (SLA) and an Operational Level Agreement (OLA) lies in their purpose and the parties involved. Here are the key differences between the two:

SLA (Service Level Agreement):

  • An SLA is an external contract between a service provider and a client, outlining the services that meet the client's expectations.
  • It focuses on the service part of the agreement, such as the uptime of services and performance.
  • SLAs provide clear expectations and guidelines for both the service provider and the client.
  • They are legally binding agreements that ensure all computer equipment will be well maintained.

OLA (Operational Level Agreement):

  • An OLA is an internal contract that outlines how a service provider plans to provide a service so the SLA can be fulfilled.
  • It defines the interdependent relationships in support of an SLA.
  • OLAs are used to track internal service commitments, such as response time for incidents or problems assigned to IT groups, and the availability of servers supporting various applications.
  • They help to manage internal teams, define clear roles and responsibilities, and identify key performance indicators to assess overall success.

In summary, an SLA is an external-facing agreement between a service provider and a client that outlines the services and expectations, while an OLA is an internal agreement that defines the interdependent relationships and commitments within the service provider's organization to support the SLA.

Comparative Table: SLA vs OLA

The main difference between a Service Level Agreement (SLA) and an Operational Level Agreement (OLA) lies in the parties involved and their purposes. Here is a comparison table highlighting the key differences:

Feature SLA (Service Level Agreement) OLA (Operational Level Agreement)
Purpose Defines performance expectations and service quality between a service provider and its customers or clients Defines responsibilities and performance expectations between different teams within an organization
Parties Involved External-facing between the service provider and the client Internal-facing between different teams or departments within an organization
Focus Client expectations and maintaining service quality Internal processes and collaboration among internal stakeholders
Key Components Clearly defining the scope of responsibilities, service quality metrics, and remedies for breaches Roles, responsibilities, actions, processes, and policies involved in providing the service

In summary, SLAs focus on meeting client expectations and maintaining service quality, while OLAs establish the internal processes and collaboration among different teams within an organization to support the SLA.