| What is Service Level Agreement (SLA) ? And Why | | | | A good SLA at least consist of things like : |
| SLA has something to do with the success/failure rate | | | | - What tasks will be performed |
| of your outsourcing process? | | | | - What the time frame is for completion of the task |
| Please remember that Offshore outsourcing does not | | | | - What metrics will be used to track performance |
| mean you gave total control to the outsourcing service | | | | - What acceptable thresholds are for these metrics |
| provider. A certain level of controlling is a must. And | | | | - How these metrics will be tracked and reported |
| Service Level Agreement or SLA is an effective tool | | | | - How dispute will be resolved |
| that can be used to control outsourcing process. | | | | - Under what circumstance service will be terminated |
| Outsourcing involves the transfer of responsibility from | | | | - How operations will be shifted back to the recipient |
| an organization to a supplier. The management of this | | | | Service Level Agreement document For software |
| new arrangement is through a contract that may | | | | project sometimes include : |
| include a Service Level Agreement (SLA). | | | | - a list of deliverables |
| The contract may involve financial penalties and the | | | | - a road map specifying release dates |
| right to terminate if SLAs are consistently missed. | | | | - the hourly rate to be paid, with a ceiling on total billable |
| Setting, tracking and managing SLAs is an important | | | | hours |
| part of Outsourcing Relationship Management (ORM) | | | | - conditions for payment on meeting project milestones |
| discipline. It is typical that specific SLAs are negotiated | | | | SLA is a legal document that detail incentive, penalties |
| up front as part of the outsourcing contract and they | | | | to protect recipient and force outsourcing service |
| are utilized as one of the primary tools of outsourcing | | | | provider deliver results. |
| governance. | | | | Outsourcing provider like ITStaff.asia always propose |
| According to "Offshoring IT, The Good, The Bad And | | | | a Service Level Agreement document to make sure |
| The Ugly " (2004:69-70), Bill blunden define SLA as | | | | that our client is protected and benefit from our |
| follows: | | | | service. |
| "A service-level agreement (SLA) is a contract | | | | Please make sure, you read and understand the SLA |
| between the recipient and provider that dictates the | | | | document that your service provider offer. |
| terms of service. It specifies the needs of the recipient, | | | | Other technical jargon you may want to understand is |
| and establishes a set of shares expectations. An SLA | | | | SLS (Service Level Specification), this is a technical |
| is intended to help minimize disputes and moderate | | | | specification of SLA. |
| them they occur." | | | | |