Contract vs Service Contract

[Karan Chhabra]

Hi All,

I am working on CSM. Need to know the use cases when to use Contracts vs Service Contracts.

Please explain.

Thanks in advance!

[Rajesh Chopade1]

hi @Karan Chhabra 

Contracts:

Contracts in ServiceNow are typically used to manage 'legal agreements' or 'commercial arrangements' between the customer and the service provider. They focus on the overall relationship rather than specific services provided.

- Contracts are used for purchase agreements, subscription agreements, warranties, or any other legal obligations.

Service Contracts:

Service Contracts are more focused on managing service-level agreements (SLAs) and service delivery. They tie directly into what services will be provided, the expected levels of service, and the management of these services.

- Used when the organization provides specific services to a customer and needs to track performance, quality, and timelines.

i hope my answer helps you to resolve your issue, if yes please mark my answer helpful and correct.

thank you

rajesh

[makmishra]

@Rajesh Chopade1  : how service contracts can manage SLA : example we have provider who offers services  :  and in the contract management we have there related tabs which is  Service Commitment for Contract  and Service commitments  we also have SLAs. how it can be implicated in contract thank you 

[Satoshi Abe]

Hi @Rajesh Chopade1 

Thanks for the useful information.We face similar challenges.
When a telecommunications carrier contracts between BtoB, will both a Contract and a Service Contract be required?
In this case, I think that the Contract and Service Contract need to be related, but currently they do not appear to be related in ServiceNow.
How should we manage Contract and Service Contract?

[makmishra]

@Karan Chhabra  have you implemented any kinds of SLA in contract management , we have Service commitments  ,or Service Commitment for Contract any idea how it's relevant