Creating an Effective Statement of Work & Outsourcing SLA

A statement of work and outsourcing SLA are both important components in the success of an outsourced project.  By creating a statement of work and outsourcing SLA, buyers can substantially increase the probability of a beneficial outsourcing arrangement with suppliers.

By definition, a statement of work is a document that outlines the work required and the timeframe in which it is to be completed.  This crucial document is generally included as part of a Request for Proposals and is designed to solicit proposals and cost estimates from suppliers.  A statement of work explains expectations, deliverables, timelines, required resources and pricing.  It is of the utmost importance that the statement of work clearly outlines the project details and if it is too ambiguous or generic, there can be problems later on that could greatly affect the project.

A statement of work may also include clarification for what is considered success and what is considered failure.  A description can be incorporated into the document that covers the criteria of what constitutes a successfully completed project.  The definition of success can vary per project, which is why it can be advantageous to include specific factors that a supplier can review before determining the project to be complete.  

An outsourcing SLA, also known as an outsourcing service level agreement, is another fundamental component of an outsourced project.  It is a contract between the buyer and supplier that defines the boundaries of the project, which may include the services that will be provided by the supplier, the amount of work to be performed and the quality of deliverables.  The outsourcing SLA should also incorporate key measurements for performance and agreed upon objectives.  These measurements must be set to reasonable performance levels.

A well defined outsourcing SLA should identify how the measurements are going to be communicated, whether through regular performance reports or real-time monitoring.  An effective outsourcing SLA will help set expectations and will show if the relationship between the buyer and seller is working as agreed.

Outsourcing projects can be an overwhelming task, which is why Everest Research Institute provides valuable information to organizations looking to outsource.  Everest Research Institute offers a wide range of services and products, including a statement of work and outsourcing SLA document that is designed to provide the buyers of outsourcing contracts a standard set of commonly outsourced responsibilities within the outsourced functions. This document can be used as a guideline for legal documents on governing the quality of the service delivered or as a basis for the negotiation of outsourced services.  Customization will be required to ensure that the statement of work and outsourcing SLA address the buyer’s specific needs.

Everest Research Institute specializes in the outsourcing market and provides actionable insight regarding outsourcing.  Some of the additional services offered include, syndicated research, white papers, market updates, custom data cuts, access to the highly qualified analyst team, custom research, webinars, strategy sessions that focus on client’s goals and requirements and client event presentations.

Contact Everest Research Institute today at (214) 451-3110 or visit www.everestresearchinstitute.com for more information.