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That is starting from the wrong end of the equation in my book.It is somewhat like letting the stick drive the horse, and may emphasize the adversarial aspect of the relationship.While companies may provide a large support group to developing an outsourcing deal, they don’t provide for the same scrutiny and support to the management of the post contract relationship.

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Monitoring, reporting, renegotiating and adjusting the metrics should be an ongoing process.

You expect your internal units to be flexible, responsive to the business climate and provide a competitive advantage to your organization, the same thing should be true of your outsourcer and the SLAs reflect those expectations.

In fact, there should be monitoring and tracking of just such results.

How has the provider managed their business and technology investments in ways that benefit you?

How should the measurements change if the customer’s requirements change over time?

If you pay bonuses internally for good work, shouldn’t you do the same externally?SLAs have become an expected part of the IT landscape yet the majority of them are poorly written and often inadequate to protect the interests of the both the client and the provider.The results are disappointed clients, frustrated providers and at their worst, disputes and lawsuits waiting to happen.That allows you to spend your dollars where they provide the greatest return.Writing a good SLA takes not only time but practice.The primary goal of creating SLAs should be to create metrics that mean something to your organization.What you want are metrics that will improve the service and provide impact not only to the bottom line but to the end user or customer.People often approach an SLA with the idea of how to put the provider in the position of monitoring themselves.While that may not be the initial intent of the outcome, here is why it often happens.One of the most obvious issues with SLAs is that often they do not clearly or thoroughly represent the expectations of the customer and don’t offer a clear enough commitment from the provider.If you talk to people about what an SLA should do they can come up with good answers but again, the end result often gets lost in the application of the agreements, penalties and credits.


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