Risk of Not having SLAs

Service Level Agreements are set up between the Provider and Customer to define level of services. If the company doesn’t have it, trust can be broken in the process as the costumer can’t know what’s going on with his investments and business.Having SLAs gives them something to aim, as the infrastructure is designed when it comes to process, people and technology), and provides financial incentive for them to go the right way and also clarity about what is needed to be achieve during the process. So it allows costumer-provider to discuss about real services levels provided.

If SLA doesn’t exist, clients are not able to discuss what service and service quality they're expecting.If you don't have some definition of what you're aiming expecting, you can't really manage the breaches and servicesprovided.Besides, not having an SLA leads to divergent point of views about the process and can lead in disagreement as this gap can be a primary cause of dissatisfaction, once provider can’t prove ongoing process, or the quality of service. Somehow without it youcan’t know what’s going on in the company, and can lose control as well of the procedures. If there is any breach the system will fall and will take some time to know where it came from, and to solve it, so some money will be lost in it as well.

“You can’t manage what you can’t measure” there’s an old saying that. If the costumer  doesn’t have access to the right measurement for a performance metric, they can’t manage if  the provider in reaching that metric. SLAs can be extremely powerful tools to help you and your service provider get the most out of a relationship.