In the current climate of tighter budgets and pressure on resources, many public sector organizations, including local authorities, are outsourcing services to external organizations under ‘service level contracts.’ Local authorities are providing services to others through service level agreements, as in the case of Irish Water. Service level agreements are also being used internally within organisations, guiding interaction between different sections of the organisation such as between central support services and delivery units.

Therefore, local authorities are both commissioners and suppliers when it comes to service level agreements. In this report we examine the nature of service level agreements, including the advantages and disadvantages involved in their implementation. A number of examples are highlighted, including references to good practice templates.

The report is primarily targeted at those local authority staff who are not particularly familiar with or aware of service level agreements. It is intended as a short, general introduction to the subject.