The Benefits Of Service Level Agreements in Custom Software Development
Regardless of who you are or what business you are into, there’s one thing we can all agree on is that software is everywhere. It takes a lot of money and effort to develop a custom software application for your business. And even though you may have the most talented developers out there, if you’re not explicit about project requirements and expectations, it might turn into a nightmare for both the client and the company.
Behind every milestone, project, contract, or business operation, there should be a Service Level Agreement (SLA) to define what you expect from your service provider and vice-versa.
The most important thing to remember about Service Level Agreements is that they are not just for big businesses or companies with complex projects. SLAs are important for any business that is looking to outsource software development, customer support, or even just a simple task like data entry.
Now, without further delay, let’s know what is SLA for software development?
What is SLA in software?
For software development companies, an SLA is a contract that can be very helpful in setting expectations with clients regarding project timelines, deliverables, and costs.
There are several service level agreement metrics, but some common ones for custom software development agreements include:
- Specific services
- Number of revisions/updates included
- Response time for support requests
- Uptime/downtime
- Software performance metrics
- Billing
- Security and compliance
Having an SLA in place can help avoid various issues during the project life cycle. It is essential to have realistic expectations in an SLA and clear communication between the client and the development company offering its software development services.
Why is service level agreement important?
A service level agreement is important because it set clear expectations for both parties involved in a project. When everyone is on the same page from the start, it can help avoid disagreements and costly delays down the road.
An SLA can also help hold a development company accountable for its work. If there are any issues with the software after it has been delivered, the SLA should outline how those issues will be resolved.
In short, an SLA is a contract that can protect both the client and the development company by setting clear expectations and outlining what to do in case of any problems. It should be evident that service level agreements for software development should include few points for streamlining the operations.
What should be added to the Service Level Agreements for software?
There’s no industry standard for what should go into an SLA for software development. However, some common points should be included:
Statement of objectives
This should be an overview of the work to be performed. It should clearly state what level of service is expected, as well as any deliverables or milestones that are to be met.
List of services
This section includes all the information related to the software development services that will be provided. This is where you’ll find specifics such as reporting, consulting, support, maintenance, etc., for streamlining the operations.
Metrics
As mentioned earlier, service level agreement metrics are important to include in an SLA. This is how you’ll track and measure the success of the project, as well as the performance of the software development company.
Roles and responsibilities
This section should outline the roles of each party involved in the software development services agreement. It should also determine what is expected of each party in terms of meeting the objectives laid out in the statement of objectives.
Performance standards
This section should include the expected quality of services to be provided, as well as any standards that need to be met. This is where you’ll find information on things like software testing, quality assurance, and code reviews.
Policies and procedures
This final section should include any policies or procedures that need to be followed in order for the software development services agreement to be valid. This could include items such as payment terms, termination procedures, and conflict resolution.
Let’s get to the examples of SLA in software development to give you a general idea.
Examples of SLAs
Here are a few popular brands managing their SLAs in software development:
1. Slack — Business Communication platform
Slack is a business communication platform that provides a number of features, including real-time messaging, file sharing, and searchable archives.
They have an SLA that states that a service credit will be provided to the users in case of SLA violations.
2. Amazon — E-commerce platform
Alexa for business by Amazon helps employees use this AI-powered assistant to wrap up a heavy amount of work. Amazon provides a monthly uptime percentage of 99% to its users.
Now that we know what should be included in a custom software development agreement, and also we have quoted a few examples, let’s move on further to know its benefits. Here are five benefits of service level agreements in software development that’ll make the deal worthwhile.
Benefits of Service Level Agreements in software development
There are numerous benefits of service level agreements in custom software development projects. Some of the key benefits are as follows:
Improved communication
SLAs help establishes clear communication between the customer and provider that help avoid misunderstandings or miscommunications.
Defined scope and expectations
SLAs help establish a clear scope for the project and defined expectations for both parties. By clearly defining the expectations regarding service levels, it becomes easier to hold both parties accountable for meeting those expectations.
Increased accountability
An SLA can help increase accountability on both the customer and provider side, as each part of the agreement is enforceable. This increased accountability can help to ensure that the project is completed on time and within budget.
Improved quality of service
By having an SLA in place, both parties are motivated to provide a higher level of service. The provider is encouraged to meet the agreed-upon service levels to avoid penalties, while the customer is motivated to receive a high level of service that meets their expectations.
Documenting reporting processes
SLAs help document the reporting processes used to measure the service provider’s performance. This documentation can help ensure that the reports are accurate and provide a clear picture of the service levels being met.
Conclusion
While SLAs can seem like a burden, they can be quite helpful in ensuring that both parties are held accountable and that the project is completed on time and within budget. If you’re not currently using SLAs in your custom software development projects, we encourage you to consider doing so to realize the full benefits.
