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It often requires a multi-disciplinary approach involving technology, financial analysis, negotiation, and contract drafting skills.

If you have never written one or have only done one or two and are now facing a major project perhaps you should get some advice or assistance from an outside consultant who does this type of work for a living.

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.

Since they do not have adequate teams to manage SLAs (even in large outsourcing deals), they let the bite of the penalties manage the deliverables.

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.

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Conversely if you were hanging shelves in the garage, if you make a mistake the error recovery is minimal, so getting experience on projects with smaller negative potential outcomes is a reasonable decision.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.It should detail the customer expectations, measurement of the service, calculation of the metrics and outline the process for correction and reporting and provide for remedies in the event of failure.An SLA may be external or internal but the key is to get all your information up front, including your business requirements so you can draft a document that will reflect the expectations of the customer. The amount of effort you expend on an SLA is dependent on the complexity and details of the SLA.I say that first because I believe in the model and second because of all the many times I have worked to fix, amend or recreate SLAs that were not crafted correctly the first time.The cost of poorly-crafted SLAs is always far greater than if you did it correctly the first time. If you were facing a major remodel of your kitchen would you want an expert contractor/designer to assist you or would you, if you were not an expert, do the work yourself?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.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.


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