Properly Framing Service-Level Agreements

by David Herron

Service-level agreements (SLAs) are one of the most critical components of an outsourcing arrangement. When properly designed and executed, SLAs drive desired behaviors, monitor performance, and guide the governance of contractually agreed objectives. Numerous other factors can also contribute to the ultimate success of the outsourcing relationship; for example, consider the importance of establishing clearly defined business goals or the critical importance of effective communications and contract management. The ultimate success or failure of an outsourcing arrangement cannot be attributed to a single element; but as we will soon see, SLAs can have a significant impact on desired outcomes.

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Properly Framing Service-Level Agreements April 2003