Difference Between OLA and SLA

Services to customers in traditional IT environments and supported and delivered by the organization. In today’s marketplace of tech-driven, there is a requirement of delivering superior IT service management. The SLA is created with details like how reliable the service would be, what would be the service availability be, etc.  

Meanwhile, the internal team, like the development team, network administration team, etc would then draw up OLA to support the SLA. But they must do this in a process that maximizes the productivity of IT. Let’s take a look at SLA and OLA, with the chief focus being on differentiating them. 

OLA vs SLA 

The main difference between OLA and SLA is their importance. OLA allows the organization to track progress and performance against commitments to the customer as described in the SLAs. On the other hand, SLA is important because it allows you to hold your service provider account as well as details exactly the service type you can also expect. 

OLA and SLA

An OLA describes the interdependent relationship in SLA’s support. The agreement describes each internal support group’s responsibilities toward other support groups, consistent time frame, and delivery for their service. The OLA’s objective is to present a measurable, concise, and clear description of the internal support relationships of service providers. 

SLA is a documented agreement that is generally between a customer and service provider that identifies both the expected level of service and the service is required. SLA is carefully designed and evaluated to realize maximum service value from a business and end-user perspective before subscribing to an IT service. 

Comparison Table Between OLA and SLA 

Parameters of ComparisonOLASLA
Stands forOperational Level AgreementService Level Agreement
Target groupShorter target groupsLarger target groups
TechnicalMore technicalLess technical
FocusOn agreement in respect to services like maintenanceOn the agreement’s service part
CommitmentWithin the organization’s internal groupsTo the customer/ client

What is OLA? 

OLA are legal documents that highlight how service providers and IT companies plan to offer track and service performance indicators to customers which is internal. It aims to define the depth and scope of duties and responsibilities by departments of companies.  

To internal customers, the OLA is required you to make critical promises. Their ability to generate is totally up to your ability to deliver on hardware and service. Due to their complexity, you should negotiate, finalize and draft your OLAs thoroughly and consist of some critical terms that prevent your fiduciary interest of the company.  

Like any contract, it also contains some vital provisions that build the terms and conditions of the relationship, like limitations, rules, and responsibilities. When it comes to OLA’s general overview section, it sets the stage for identifying parties, relationships and establishes the objective of the relationship.  

Transparency must exist between service providers and vendors. OLA’s incident management section should list ad-hock requests, and how they agree to process them, and the standard expected. It is vital to segment the process through major and normal incidents. 

What is SLA? 

In SLA, specific service aspects like responsibilities, availability, and quality are agreed upon between the service user and the service provider. The most usual SLA component is that the services should be offered to the customer as an aspect of the contract.  

The contract can be legally binding informal or formal. The agreement might consist of different teams or separate organizations within one organization. It consists of several components, from a service’s definition to the agreement termination. For ensuring, SLAs are consistently met, the agreements are designed with particular demarcation lines.  

SLAs have been used by fixed operators of line telecom since the late 1980s. Nowadays, SLAs have widely used that larger organizations that have several different SLAs which exist itself within the company. This practice maintains the service’s same quality amongst the organization’s different units.  

SLAs are generally defined at three different levels. Firstly, customer-based SLA includes only an individual customer group. Secondly, service-based SLA is for all customers using the service provider’s service. At last, multi-level SLA is split into different levels like corporate-level SLA, customer-level SLA add service-level SLA. 

Main Differences OLA and SLA 

  1. OLA is not applied to the resolution process of the overall ticket and it is only specified to the group of support to which the ticket is assigned. Conversely, to the overall ticket resolution process, the SLA is applied, and also with the customer, it is based on the service contract.  
  2. OLA can be written in the form of a short paragraph that highlights the OLA’s purpose. It generally talks about the chief goals and objectives of OLA, like within the company’s IT sector is providing quality customer service. Meanwhile, SLA mainly underscores the agreement’s brief introduction, service scope, contract duration, and concerning parties.  
  3. OLA is contracted essentially between the organization’s internal support departments that provisioned the SLAs. On the flip side, SLA is agreements that are generally between a customer and a provider.  
  4. Each internal group in OLA has certain responsibilities to the other group, and that’s why it fails to link the service providers with the customer. In contrast, unlike the OLA, SLA offers the connection with the customers to service providers.  
  5. When it comes to importance, against commitments to the customer, OLA allows the organization to track progress and performance. On contrary, SLA is vital because it permits you to hold your service provider account and also to hold the details of exactly the service type. 

Conclusion 

It can be concluded that both OLA and SLA play a vital role in today’s marketplace of tech-driven, there is a requirement of delivering superior IT service management. When it comes to the target group, OLA has a shorter target group compared to SLA. In contrast, SLA has a larger target group. The abbreviation for Operational Level Agreement is OLA. On contrary, the abbreviation for Service Level Agreement is SLA.  

The focus of OLA is an agreement in respect to services like maintenance. On the other hand, the focus of SLA is on the agreement’s service part. OLA is more technical in comparison to SLA, while SLA is less technical. OLA underscores the commitment within the organization’s internal groups. On contrary, SLA highlights commitment to the customer/ client. 

References  

  1. https://events.esd.org/wp-content/uploads/2018/08/30-Malik-Hafiz_Draft-Paper.pdf
  2. https://www.researchgate.net/profile/Reem-Abdalla/publication/333263863_Addressing_Service_Availability_parameters_in_Service_Providers_using_Technology_as_a_Complex_System/links/5ec38728299bf1c09ac91017/Addressing-Service-Availability-parameters-in-Service-Providers-using-Technology-as-a-Complex-System.pdf
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