What Is Master Service Level Agreement

What is Master Service Level Agreement?

Master Service Level Agreement (MSLA) is a contract or an agreement between a service provider and its client, defining the level of service that the provider will deliver. This agreement includes the scope of services, service-level objectives, measures, performance metrics, and penalties or incentives if the service provider fails or exceeds to meet the defined service levels. The Master Service Level Agreement defines the processes, responsibilities, and communication protocols between the parties.

Importance of Master Service Level Agreement

The Master Service Level Agreement is important for both parties, as it ensures that:

1. Service Level Expectations are defined and agreed upon.

2. Service Level monitoring and control processes are in place for continual improvement.

3. Dispute resolution procedures are established in case of non-compliance.

4. Service Provider and client responsibilities are clearly defined.

5. The agreed-upon level of service and service level objectives are met.

Elements of Master Service Level Agreement

The Master Service Level Agreement should include the following elements:

1. Service scope: Defines the services that will be delivered and the objectives that need to be met.

2. Service level objectives (SLOs): Describes how the service provider will achieve the expected level of service.

3. Service level agreements (SLAs): Outlines the performance metrics, and service delivery time that the provider will meet.

4. Metrics and reporting: Outlines the process for gathering and reporting performance metrics.

5. Service Level Management Process: Describes the process for managing and ensuring that SLOs and SLAs are met.

6. Service credits and penalties: Describes the consequences of not meeting service commitments.

7. Governance and escalation: Describes the governance process and escalation levels for service issues.


Master Service Level Agreement is critical in ensuring a successful relationship between the service provider and client. It provides clarity, transparency, and accountability for all parties involved. With a well-crafted MSLA, both the service provider and client will have a clear understanding of expectations, responsibilities, and the process for resolving service delivery issues. Therefore, it is essential for companies to invest in creating and maintaining a Master Service Level Agreement that aligns both parties` needs and goals.