OLA Agreement Example: Understanding the Terms and Conditions

If you are running a business that involves outsourcing services, you will be familiar with the term “OLA Agreement” or Operating Level Agreement. An OLA agreement is a document that defines the terms and conditions between two or more parties who are responsible for managing the same service. This document acts as a benchmark that outlines the expectations and responsibilities of each party in case of any disputes or issues.

An OLA agreement is typically used to manage the service level for IT services, such as network services, database management, and hardware infrastructure. However, it can be used for any service that requires the collaboration of multiple parties. The objective of an OLA agreement is to ensure that each party meets their service level commitments, and the overall service is delivered effectively and efficiently.

Here is an example of an OLA agreement for network services:

Service Description: Network Services

Objective: To provide reliable network services to users in the organization

Parties Involved: IT Service Desk, Network Operations Center

Service Level Targets:

• Availability: Network services should be available 99.9% of the time

• Response Time: The IT service desk should respond to any network failure within 30 minutes

• Resolution Time: Network operations should resolve any network failure within 2 hours

Roles and Responsibilities:

IT Service Desk:

• Receive network failure reports from users

• Monitor the progress of incident resolution

• Update the users on the incident status

Network Operations Center:

• Troubleshoot the network issues reported by the IT service desk

• Resolve the network issue within the specified resolution time

• Communicate the resolution status to the IT service desk

Reporting and Escalation:

• Any delay in resolution time should be communicated to the IT service desk

• Any unresolved issues should be escalated to the service manager

• Service manager should engage the relevant parties and resolve the issue within the agreed timeframe

Service Management:

• Ensure that the service level targets are met

• Review the OLA agreement periodically to ensure that it is still relevant and effective

Conclusion:

An OLA agreement is an essential document that ensures that all parties are accountable and committed to delivering the service as per the agreed terms. It sets the expectations and responsibilities of each party and provides a benchmark for measuring performance. By having an OLA agreement in place, you can help avoid disputes and ensure that the service is delivered efficiently and effectively.