What type of document should be used to outline terms between an IT services provider and the business or customer?

Question

Options

• AService Level Agreement
• BCapacity Management Plan
• CService Improvement Plan
• DOperational Level Agreement

• A
  90% (43)
• B
  2% (1)
• C
  6% (3)
• D
  2% (1)

Explanation

A Service Level Agreement (SLA) is the correct document because it formally defines the agreed-upon terms, performance expectations, and responsibilities between an external IT services provider and its customer or business client.

• B (Capacity Management Plan) is wrong - this is an internal planning document focused on ensuring IT resources can meet future demand, not on defining service terms with a customer.
• C (Service Improvement Plan) is wrong - this outlines actions to improve existing services over time; it's a remediation/improvement roadmap, not a contract of terms.
• D (Operational Level Agreement) is wrong - an OLA defines agreements between internal teams or departments within the same organization (e.g., IT support and the network team), not between a provider and an external business/customer.

Memory tip: Think of the "S" in SLA as standing for "Supplier" - it's the document you sign with an outside supplier/provider. OLA = "Our" internal agreement, SLA = agreement with an outside party.

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