Service Level Agreement For Contractors

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. 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. If the service provider is taken over by another entity or merges with another entity, the client can expect his ALS to remain in effect, but that may not be the case. The agreement may need to be renegotiated. Don`t make assumptions; Note, however, that the new owner does not want to alienate existing customers, so they can choose to honor existing SLAs. Include reference agreements, policy documents, glossary and relevant details in this section. This may include terms and conditions for the service provider and the customer, as well as additional reference material, for example. B third-party contracts. SLAs are an integral part of an IT provider contract.

An ALS brings together information about all contract services and their expected reliability in one document. They clearly indicate metrics, responsibilities and expectations, so that in the event of service problems, no party can plead ignorance. It ensures that both parties have the same understanding of the requirements. From a regulatory perspective, organizations must have a formal contract with suppliers providing 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. It is important to remember that while precise metrics vary by supplier, the areas covered are uniform, specific and measurable in terms of work volume and quality, speed, responsiveness and efficiency.