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Service Level Agreement Contract Management

If service providers are not involved in the development of ALS, there will be understandable and integrated causes of conflict and disagreement. Suppliers will always be able to say that they do not explicitly agree with them, or that the objectives are unrealistic and that the consequences are disproportionate. While service levels, service credits and termination rights are the most important provisions of a service level contract, an ALS may include other issues, for example. B: From a regulatory point of view, organizations must have a formal contract with suppliers offering products or services. The treaty must clearly address the obligations and responsibilities of all parties involved. In the past, some organizations may have had informal expectations of suppliers who did not feel compelled to write or not properly reviewed, resulting in problems with applicability, lender risk management and general risk management. It is therefore a regulatory requirement and a proven method of entering into a contract with all your suppliers. Make sure the metrics reflect factors that are in the service provider`s control. To motivate good behavior, ALS metrics must reflect factors in the control of the outsourcer. A typical mistake is to penalize the service provider for delays caused by the customer`s lack of performance. If the client. B provides application code change specifications several weeks late, making it unfair and demotivating to keep the service provider on a pre-indicated delivery date. AlS bias by measuring client performance in interdependent actions is a good way to focus on expected results.

SLAs should apply to service results that are 100% under the control of the provider. Many SLAs follow the specifications of the Information Technology Infrastructure Library when applied to IT services. The ALS is a documented agreement. Let`s see an example of ALS that you can use as a template to create your own SLAs. Keep in mind that these documents are flexible and unique. If necessary, make changes, as long as you include the parties involved, especially the customer. Consider other topics on which you may want to add agreements, z.B.: SLAs are an important part of any technology and outsourcing provider contract. Beyond expectations for type and quality of service, ALS offers remedies if requirements are not met. Although your ALS is a documented agreement, it doesn`t have to be long or too complicated. It is a flexible and living document.

My advice? Create one with this model and examples and advise your clients for any perceived shortcomings. As unforeseen cases are unavoidable, you can re-call and optimize ALS if necessary.

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