What Is Service Level Agreement in Bpo
As with most successful relationships, communication is key. The first step is to choose the right steps to take to make your service level decisions. In these cases, the result is a business outcome, not a specific activity, task, or resource. But even in a results-driven transaction, SLAs serve as key performance indicators against those business outcomes. The SLAs of these companies will not describe the technical or operational requirements for specific tasks; Rather, they describe the end customer`s goals. For this approach to work well, these outcomes must be clear, there must be ways to measure the achievement of outcomes, roles and responsibilities must be clearly defined, and the provider must have control over the end-to-end service required to achieve results. Some providers may claim the right to “regain” paid service credits. Such a provision allows providers to recover the service credits they have waived in the event of an SLA failure by working at or above the standard service level for a certain period of time. While providers may argue that a repayment provision is only fair, it can undermine the overall approach to service credit. The final benefit of a service level agreement is that it makes planning easier. Once you have a target service level, you have a concrete goal for which you can start creating a plan.
For the defined measures to be useful, an appropriate baseline must be established, with measures defined at an appropriate and achievable level of performance. This baseline will likely be redefined throughout the parties` participation in the agreement, using the processes set out in the “Periodic Review and Amendment” section of the SLA. SLAs in the BPO industry are ultimately determined by a company`s unique needs and the metrics that matter most to its success. There are no really “one-size-fits-all” measures. However, in this blog, we`ll provide an overview of the valuable service-level agreement metrics that companies can consider as part of their BPO contracts. The SLA should include not only a description of the services to be provided and their expected service levels, but also the measures against which the services are measured, the duties and responsibilities of each party, the remedies or penalties for violations, and a log for the addition and removal of measures. Here is the list of the exact services that define the standards of results. In this way, misunderstandings or confusion are avoided from the beginning. The hiring company has a clear set of guidelines on what to expect from the partnership.
SLAs are an essential part of any outsourcing and technology provider contract. In addition to listing expectations for the type and quality of service, an SLA provides remedies if the requirements are not met. The most important elements of a service level agreement are: Service Availability: The period during which the service is available for use. This can be measured by the time window, where, for example, 99.5% availability between the hours of 8 a.m. and 6 p.m. is required and is more or less available at other times. Ecommerce operations usually have extremely aggressive SLAs at all times; 99.999% uptime is a not uncommon requirement for a website that generates millions of dollars per hour. In addition to the quantitative aspects, the qualitative evaluation of the survey is also crucial to determine whether your employees are satisfied or not. For example, an employee rates a good to perfect rating for all other factors except management perception. This exception should be a good indicator that something is not good at the management level or that conflicts are increasing and that you may want to investigate. Are you actively monitoring your WAN Service Level Agreement? Overall, an SLA typically includes an explanation of the objectives, a list of services to be covered by the agreement, and a definition of the responsibilities of the service provider and the customer under the SLA.
Any important contract without an appropriate SLA (reviewed by a lawyer) is susceptible to intentional or unintentional misinterpretation. The SLA protects both parties in the agreement. Service level agreements can include many service performance metrics with corresponding service level objectives. A common case in IT service management is a call center or service center. Commonly agreed measures in these cases include: If the service provider is acquired by another company or merges with another company, the customer can expect its SLA to remain in effect, but this may not be the case. The agreement may need to be renegotiated. Don`t make assumptions; However, keep in mind that the new owner does not want to alienate existing customers and therefore may decide to abide by existing SLAs. Since the formal written contract is shared between two parties, a service level agreement is an obligation between a provider that guarantees that certain services are provided. It`s a promise you make to your customers that you`ll maintain the service levels they and their customers expect.
SLAs define customer expectations for service provider performance and quality in different ways. Some metrics that can indicate SLAs are: Which SLA turns out to be a priority depends on what makes the most sense for the company, its customers, and its specific business model. IT organizations that manage multiple service providers may want to implement operating level agreements (ARAs) that describe how certain parties involved in the IT service delivery process interact with each other to maintain performance. This last point is essential; Service requirements and vendor features are evolving, so there needs to be a way to ensure that the SLA is kept up to date. .