When a business partners with a Managed Service Provider (MSP), an important yet often misunderstood aspect of the relationship is the Service Level Agreement (SLA). SLAs are in place to set expectations regarding how IT support is delivered by the MSP to the business. An SLA is the contract between the service provider and a client.

At the heart of SLAs are service-level agreements. These levels determine how the MSP addresses various types of issues. For small businesses, understanding these levels ensures they get more value from their MSP

Common SLA Levels in MSP Agreements

In the case of managed IT, some providers offer different service levels or tiers. The actual term varies per MSP, but these levels are similar to choosing a phone plan, where you select the support that matches your needs and budget. Here's a simple breakdown on how these tiers work and what they offer.

Basic Level

The lowest tier is the basic level. It's usually the "just enough to stay safe" option of the three. The basic level is ideal for small businesses that are just starting to explore managed IT. This tier offers services that involve monitoring a business's IT systems to identify potential issues, along with basic support, including antivirus management.

Basic-level plans aim to prevent problems from escalating to avoid downtime. Both issues can prove to be fatal for small businesses. 

Standard Level

The standard level is the middle ground and is often the most popular option, as it offers more services than the basic level while being less expensive than premium plans. This level is ideal for businesses that rely on technology and need a plan that gives a more proactive approach to problem-solving.

Standard-level plans offer comprehensive monitoring services and problem resolution, including help desk, remote, and on-site support. This level offers businesses a more comprehensive IT support service to minimize the risk of IT-related disruptions.

Premium Level

Lastly, the premium level offers the most comprehensive coverage, making it the most expensive option. This level covers everything your business needs from every angle. It's a full-service IT provider that offers services like system design and management.

Availing yourself of the premium tier also means you can be hands-off in this part of your business, allowing you to focus your time on other matters. Premium-level plans offer businesses a comprehensive IT management solution, ensuring the highest level of uptime and security.

Why SLA levels matter

SLA levels set clear expectations between businesses and their MSPs. Without these levels, every support request can feel urgent and may lead to confusion. SLA levels provide a shared understanding of what will be addressed first and how quickly it will be addressed.

For businesses, clarity between them and the MSP reduces uncertainty during stressful situations. For MSPs, it allows support teams to prioritise their work effectively and deliver consistent service.

When both parties to the deal understand the agreed-upon service levels, the relationship tends to be smoother and more transparent.

The Business Impact of SLA Levels

The impact of SLA levels is felt at a business level. Well-defined levels help reduce downtime by ensuring the MSP addresses the most disruptive issues quickly. This can protect productivity, revenue, and customer experience.

SLA levels also influence cost. Faster response time and higher availability commitments require more resources to deliver. As a result, higher SLA levels are associated with higher service fees. This isn't about charging more unnecessarily; it's about aligning service expectations with the level of investment.

For businesses, understanding this connection helps when evaluating MSP offerings. It also makes it easier to choose a level that fits business needs and budget.

Key Metrics That Define SLA Levels

A small set of key metrics helps track performance and measure SLA levels, with response and resolution time being the two most common. Response time measures how quickly the MSP acknowledges a support request, while resolution time focuses on how long it takes to resolve the issue and restore normal operations.

There are other metrics to consider; common ones include system availability and escalation timeframes that define when an issue is passed to senior technicians. 

Many MSPs provide regular reports that show whether they meet these targets, giving businesses visibility into the quality of support they are receiving.

How to Design Effective SLA levels

Adequate SLA levels are realistic and easy to understand. They should also align with your business's operations. The goal isn't to demand the fastest response time for every issue, but to ensure that critical problems receive proper attention.

For businesses new to working with an MSP, it's worthwhile to initiate a discussion about what matters most. A good MSP will help translate business priorities into sensible SLA levels instead of pushing complex commitments. 

As businesses grow and evolve, SLA levels should be regularly reviewed to ensure they continue to reflect current needs.

What SLA Levels Mean for Your Business

Service level agreement levels are a practical way to ensure clarity, consistency, and trust between businesses and their MSPs. When properly defined and well-managed, SLA levels help prioritise critical issues and align IT support with business goals.

By understanding how SLA levels work and their practical implications, businesses can make more informed decisions and build stronger partnerships with their managed service providers.