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ITIL4F ITIL Management Practices Practice Question

An SLA defines the expected level of service between a service provider and a customer. What is an OLA?

⚠ Common exam trap

Watch out — candidates often confuse the OLA with an Underpinning Contract (UC), but the key distinction is that an OLA is internal to the organization, while a UC is with an external supplier.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

An agreement between internal teams to support the SLA

An OLA (Operational Level Agreement) is an internal agreement between teams within the same organization that defines how they will work together to support the SLA. It specifies the responsibilities, deliverables, and performance targets for each internal group, ensuring that the service provider can meet the SLA commitments to the customer.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • A legal contract with an external customer

    Why it's wrong here

    This option accurately describes a Service Level Agreement (SLA), which is a formal, often legally binding, contract between a service provider and an external customer. An SLA defines the specific services to be provided, the agreed-upon service levels, and the responsibilities of both parties. While crucial for service delivery, the question is implicitly asking for a component that *supports* the SLA from an internal perspective, rather than defining the SLA itself.

  • An agreement between internal teams to support the SLA

    Why this is correct

    This option correctly describes an Operational Level Agreement (OLA). An OLA is an internal agreement between different departments or teams within the same service provider organization, outlining their specific responsibilities and commitments required to deliver the agreed-upon service levels defined in an external Service Level Agreement (SLA). It ensures that internal support functions are aligned and capable of meeting customer expectations.

  • An agreement between the service provider and an external supplier

    Why it's wrong here

    This option describes an Underpinning Contract (UC), which is a formal agreement between a service provider and an external third-party supplier. These contracts define the goods or services that the supplier will provide to the service provider, along with the agreed-upon performance targets, which are essential for the service provider to meet its own Service Level Agreements (SLAs) with customers. It differs from an OLA by involving an external entity.

  • A plan for service improvement

    Why it's wrong here

    This option describes a Continual Improvement Plan (CIP), which is a structured document outlining specific initiatives and actions designed to enhance the quality, efficiency, or effectiveness of services, processes, or products over time. While vital for evolving service delivery, a CIP focuses on future enhancements and problem resolution, rather than defining the current operational agreements or service levels that underpin service delivery. It is distinct from agreements like SLAs, OLAs, or UCs.

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