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Service Level Agreements

Outsourcing partnerships are not easy. Especially for the services sector disputes invariably arise. Resolving disputes is the job of carefully crafted service level agreements (SLAs). An SLA is a document that identifies the agreed-upon services that will be provided to an organization or department in an outsourced setting. Its objective is to ensure that the delivered service satisfies the customer. The SLA identifies customer expectations and defines the boundaries of the service, stating previously determined service level goals, operating practices, and reporting policies.

Elements of a Service Level Agreement

• Definition of service provided, parties involved, and effective dates of agreement,

• Specification of the number of users and locations for which the service will be offered,

• Explanation of problem-reporting procedures, including conditions of escalation to next higher tier of support, and

• Procedures for revising the SLA to reflect operational changes.

The scope and scale of SLAs varies depending on the situation. Some companies contemplate outsourcing whole departments; others outsource individual projects.

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*Contributed by -
Deepa Dubey,
PGDIM IXth Batch,
NITIE Mumbai.