This Practice Note focuses on the key issues to consider when structuring service levels and remedies for failure to achieve them in outsourcing contracts. When drafting service level agreements (SLAs), relevant considerations will include the type of service level(s), what to measure, cost and quality, outcomes and outputs, how service levels are measured, service credits and other remedies, earn back and performance bonuses and changes to service levels during the contract term. The specific measurements and metrics used in SLAs will depend on the type of services. It is drafted to apply to any form of outsourcing and does not specifically focus on IT services (although what is discussed here is relevant in that context). For IT specific service level content, see Practice Note: Key issues in SaaS and hardware/software maintenance SLAs and Precedents: Service Level Agreement (hardware/software fault resolution support services) and Service Level Agreement (Availability (uptime) service level for SaaS). The service level schedule is one of the most important in an outsourcing contract. It governs measurement of the supplier’s quality of service against