ServiceNow is a popular platform that offers IT service management (ITSM) and IT operations management (ITOM) capabilities to its clients. Within the platform, there are several terms that can be confusing to those new to the ServiceNow ecosystem. Three of these terms are SLA, OLA, and Underpinning Contract. In this article, we’ll explain the difference between these three terms and how they relate to one another.

Service Level Agreement (SLA)

A Service Level Agreement (SLA) is a document that defines the level of service that a service provider is expected to deliver to their customer. SLAs are typically created between a customer and a service provider. A SLA outlines the agreed-upon level of service and the consequences if that level of service is not met. The SLA may include metrics, such as uptime, response time, and resolution time.

In ServiceNow, SLAs are created as records within the SLA Definitions table. These records include details such as the target response and resolution times, the escalation path, and the breach conditions that must be met before an SLA is considered breached.

Operational Level Agreement (OLA)

An Operational Level Agreement (OLA) is similar to an SLA, but it’s created between two teams within the same organization. OLAs define the level of service that one team provides to another team within the same organization. OLAs are typically used to ensure that internal support teams are providing the same level of service to each other as they would to external customers.

In ServiceNow, OLAs are created as records within the OLA Definitions table. These records include details such as the services covered by the OLA, the expected service levels, and the escalation path.

Underpinning Contract (UC)

An Underpinning Contract (UC) is a document that outlines the terms and conditions between the service provider and third-party suppliers. These third-party suppliers often provide support services that enable the service provider to deliver services to their customers. UCs usually cover aspects such as legal compliance, data protection, and the use of intellectual property.

In ServiceNow, UCs are created as records within the Underpinning Contract table. These records include details such as the supplier name, the type of service provided, and the terms and conditions of the contract.

In conclusion, SLAs, OLAs, and UCs are all important terms within the ServiceNow platform, but they serve different purposes. SLAs define the level of service that a service provider delivers to their customers, OLAs define the level of service that one team provides to another team within the same organization, and UCs outline the terms and conditions between the service provider and third-party suppliers. By understanding these terms and their differences, service providers can ensure they are meeting the needs of their customers and meeting their obligations to their suppliers.