Service Level Agreement

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Service Level Agreement (SLA) includes provisions relating to the obligations of the partners and the principles of action in emergencies and crisis. Comparing traditional and modern approach to outsourcing, it is worth noting that the perceptible trend is to restrict the ranges of specific provisions to guarantee quality of service (SLA). The remainder of the contract is an agreement, in which are included the general assumptions and objectives. In modern approach to outsourcing, this part of the documentation of the relationship between the cooperation partners is vague and informal [Westernising..., the Journal of Management Development, 2000, pp. 4 – 6]. Service Level Agreement often takes form of outsourcing agreement.

Part of the contract with the provider of outsourcing services for the quality assurance of services provided should include in particular the arrangements for:

  • the characteristics of the outsourced tasks
  • terms of achieving the objectives,
  • the responsibilities of the service provider for failure to comply with the arrangements as to the quality and performance of the services,
  • indicators used in conformity assessment of quality of service with the accepted provisions
  • tolerances of indicator values,
  • terms of complaint,
  • forms of compensation for non-performance or improper performance of the outsourced tasks.

In the case when the parties decide on the conclusion of the contract, arrangements for quality assurance services (SLA) should be developed in the form of a separate document annexed to the agreement.

References

  • Westernising the keiretsu model: the outsourcing paradigm shift, (anonymous), Journal of Management Development, vol. 19, No. 8, 2000
  • Patel, P., Ranabahu, A. H., & Sheth, A. P. (2009). Service level agreement in cloud computing.