A Service Level Agreement (SLA) is an important step for establishing a business engagement. When a Service Level Agreement is signed between a vendor and a client, it contains the parameters which will guide the business relationship. A SLA defines the deliverables, priorities, responsibilities and guarantees/warranties associated with the services provided. Service Level Agreements are particularly important for IT service vendors, as buyers specifically look for vendors who define the terms and conditions and roadmap for achieving the deadline of the project from the start. Having established standards and procedures to follow will also allow effective IT service management and performance testing for all business applications. Vendors who wish to get outsourcing projects from IT companies need to have a strong Service Level Agreement to convince them to outsource to them. Forming, tracking and managing SLAs is also an important aspect of the business engagement.
The IT service industry gives particular importance to a Service Level Agreement in all its contracts. Critical business functions depend on softwares and a single malfunction in IT operations can severely damage the bottom line and business functionality. It is hence very important to have a defined process and strict rules to ensure that the promised IT services will be delivered. A Service Level Agreement helps define these processes and regulated the business engagement. It not only helps in IT service management, but is also a good tool for performance testing.
Features of a good Service Level Agreement
A Service Level Agreement is generally customized according to a client’s requirement and hence differs from client to client. However, an effective SLA has some common key aspects. 5 of the most important aspects an SLA should include are:
The IT service industry gives particular importance to a Service Level Agreement in all its contracts. Critical business functions depend on softwares and a single malfunction in IT operations can severely damage the bottom line and business functionality. It is hence very important to have a defined process and strict rules to ensure that the promised IT services will be delivered. A Service Level Agreement helps define these processes and regulated the business engagement. It not only helps in IT service management, but is also a good tool for performance testing.
Features of a good Service Level Agreement
A Service Level Agreement is generally customized according to a client’s requirement and hence differs from client to client. However, an effective SLA has some common key aspects. 5 of the most important aspects an SLA should include are:
- Definition what services are being provided
- What the measurement criteria for services will be
- Method of delivery of services
- Action to be taken if the provider fails to deliver as promised
- What the quality standards of the services will be
Advantages of having a SLA
The vendor and the client both benefit from having a Service Level Agreement in place before the start of the project. Some of the important advantages a SLA are:
The vendor and the client both benefit from having a Service Level Agreement in place before the start of the project. Some of the important advantages a SLA are:
- Documented evidence of business engagement
- Defines what the quality expectation will be
- Defines the implementation of the agreement
- Becomes a referring point in case of disagreement between both parties
- Gives a standard against which the quality of the services can be measured
- The goals and methodology are clarified from the start
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