Nowadays, companies are able to outsource a wide range of services that contribute to their activities. Whenever activities are outsourced, the SLA helps define the relationship between the customer and the service provider. This can cover everything from logistics service providers and accounting services to consultants and freelancers. As soon as a business function is delegated to an external service provider, the service level agreement can contribute to a beneficial and carefree relationship. Tools that automate the collection and display of performance data at the service level are also available. SLAs are an essential part of any outsourcing and technology provider contract. In addition to listing expectations for the type and quality of service, an SLA provides a remedy if the requirements are not met. This last point is essential; Service requirements and vendor functionality are evolving, so there needs to be a way to ensure that the SLA is kept up to date. Typically, these processes and methods are left to the outsourcing company to ensure that these processes and methods can support the SLA. However, it is recommended that the client and the outsourcing company work together during the SLA negotiations to dispel misunderstandings about the process and method of support, as well as the management and reporting methods. In a customer-based SLA, the customer and the service provider enter into a negotiated agreement on the services to be provided. For example, a company can negotiate with the IT service provider that manages its billing system to define in detail its specific relationship and expectations.
In the case of longer-term contracts, the parties must verify the provision of the services. Provisions relating to reports, meetings, provision of information and escalation procedures for disputes are sometimes included in the SLA and not in the body of the agreement. Unfortunately, these types of provisions are often overlooked, but for a service contract to be successful, it is important that contract management procedures are agreed upon and effectively followed. Measures must motivate good behaviour. When defining metrics, both parties should keep in mind that the purpose of metrics is to motivate appropriate behavior on behalf of the service provider and customer. The aim should be a fair integration of best practices and requirements that maintain the service and avoid additional costs. Service level agreements do not guarantee that they will be met. If an agreement is negotiated with management and then buried somewhere in a file, the person doing the work may not be aware of the expectations under which they are working. Thus, compliance with the basic standards and measures that apply to the task will help ensure compliance.
Make sure the measurements reflect the factors that are under the control of the service provider. To motivate good behavior, SLA metrics must reflect the factors that are under the control of the externalizer. A typical mistake is to punish the service provider for delays caused by the customer`s lack of performance. For example, if the customer provides application code change specifications several weeks late, it is unfair and demotivating to keep the service provider on a predetermined delivery date. Making the SLA two-way by measuring the client`s performance in interdependent actions is a great way to focus on the expected results. The SLA should include a detailed description of the services. Each individual service should be defined, i.e. there should be a description of what the service is, where it is to be provided, to whom it is to be provided and when it is needed. For example, if one of the services is the provision of a particular report, the corresponding provision of the SLA must describe the report, indicate what it should contain, specify its format (possibly in relation to a particular model), how it should be delivered (e.B . .