Service Level Agreement Metrics
IT outsourcing agreements, in which the remuneration of service providers is linked to the results obtained, have gained popularity, with companies developing from time and pure materials or full-time price models. However, in the case of critical services, customers should invest in third-party tools to automatically collect sLA performance data that provide objective performance measurement. Outsourcing involves transferring responsibility from an organization to a supplier. This new agreement is managed by a contract that may include one or more SLAs. The contract may include financial penalties and the right to terminate if one of the SLAs metrics is routinely missed. The definition, monitoring and management of ALS is an important part of managing the outsourcing relationship (ORM) discipline. Specific SLAs are generally negotiated in advance as part of the outsourcing contract and are used as one of the main tools for outsourcing governance. For example, an IT department generally agrees to provide technical support for a large number of services and devices within the company, and offers guarantees for things like operating time, initial call resolution and recovery time after service outages. KPIs are the specific metrics chosen to check whether the IT desk service fulfills these guarantees. If this is done correctly, the SLAs in BPO ensure that both parties understand their responsibilities and focus on the right areas, while the metrics used to measure service are defined.
They also create accountability and communication, create a dialogue on key issues in the process, and provide corrective action and detailed actions when agreed service levels are not met. First, ALS is an acronym for service level agreements. These agreements are usually concluded between a (service provider) and its clients and provide details of the services provided and how to ensure the stability of services. Ideally, ALS should be aligned with the technological or commercial objectives of the commitment. The wrong direction can have a negative impact on the pricing of deals, the quality of the service delivery and the customer experience. The best BPO suppliers evaluate their team`s performance using agreed KPIs that are monitored and reported weekly to ensure the quality of work during the month. These measures are monitored and declared in addition to the measures agreed for the level of service agreement. Figures are communicated to the company through a real-time dashboard and/or monthly audit. Efficiency metrics generally translate into the same volume of services for less money or a larger volume of service for the same money.
The main indicators are the effectiveness of costs and effort (cost per call for assistance) and the use of the team (percentage of time spent on assistance). Uptime is also a common metric that is often used for data services such as shared hosting, virtual private servers and dedicated servers. General agreements include network availability percentage, operating time, number of planned maintenance windows, etc.