Planning and Managing Service Levels

by Ian S. Hayes

Companies turn to outsourcing for many different reasons. Some companies want to pursue new opportunities, others seek to offload nonstrategic functions, and still others want to reduce and control costs. Yet despite these different motivating factors, there is a common thread underlying each of these decisions to outsource. In the end, all companies that choose to outsource are looking for good, even exceptional, service from their outsourcer. Outsourcing may reduce costs, but if service is poor, is the financial benefit worthwhile? Outsourcing may free IT staff to perform more strategic work, but if service to end users deteriorates, has the company really gained anything? Service, in all of its forms, is a paramount aspect of any outsourcing relationship.

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Planning and Managing Service Levels September 2000