Service Level Agreement Metrics

SLAs define contractual terms for services, including issues such as availability and responsiveness of support. For example, promising customers 99.9% service uptime or a support response within 24 hours. In addition to formalizing service expectations, SLAs set the conditions for recourse in the event of a violation of the requirements. An opt-out clause is an important provision in which the service provider undertakes to keep the client company harmless in the event of a breach of its guarantees. The exemption means that the supplier must pay the customer all third-party legal costs resulting from the breach of warranties. If you are using a default SLA provided by the service provider, it is likely that this provision is missing. Ask your in-house counsel to design a simple provision to include it, although the service provider may wish to continue negotiations on this point. A service level agreement (SLA) defines the level of service a customer expects from a provider and defines the metrics against which that service is measured and the corrective actions or penalties if the agreed service levels are not met. Normally, there are SLAs between companies and external suppliers, but they can also be between two divisions within the same company. Once you`ve provided the best SLAs for your current business and customer needs, you`re ready to implement them. Here are some tips for taking SLAs to a whole new level of lightness and efficiency.

When customers provide certain levels of access to internal systems, outstanding BPO providers can even create dashboards that allow customers to display the power of measurement in real time. For example, a credit dashboard could show how many invoices are being processed, where they are in this process, and why some are waiting to be processed. Customers can establish common metrics for multiple service providers, which take into account the cross-vendor impact and take into account the impact that the provider may have on processes that are not considered part of their contract. SLAs are a critical component of any outsourcing and technology provider contract. Beyond the list of expectations for the type and quality of service, an SLA can remedy non-compliance. Service providers should be mindful of the differences between in-house production and customer-oriented results, as they can help set service expectations. Define an appropriate baseline. Defining the right metrics is only half the way. To be useful, metrics must be tailored to a reasonable and achievable level of performance.

If strong historical measurement data is not available, you should be prepared to check and adjust the parameters later by a predefined process defined in the SLA. Make sure the metrics reflect factors that are under the control of the service provider….