Everest Research Institute Offers Valuable Insight into Service Level Agreements

Service level agreements can make the difference of whether an outsourced project succeeds or fails.  By understanding service level agreements and the importance of these contracts, buyers can help prevent future challenges that may arise with suppliers.  Everest Research Institute, founded by Everest Group, focuses on the outsourcing industry and provides many useful tools to assist buyers with the creation of service level agreements and other important documents.

When a company decides to outsource, some knowledge and control are transferred to the supplier.  If required tasks and assigned deadlines are not effectively communicated, there leaves too much room for misinterpretation on the part of both the buyer and supplier.  Service level agreements help manage the relationship between buyers and suppliers and should dictate the terms of service.  This contract details the buyer’s needs and sets expectations.  If created properly, service level agreements can curtail disputes that may arise from an unclear understanding of what is expected.   

Everest Research Institute offers a Statement of Work & Service Level template that is designed to provide buyers with a standard set of commonly outsourced responsibilities within the outsourcing functions.  This document is available for various industries so that the requirements can be met for just about any buyer.  It can be used as a basis for negotiation with the supplier and as an overall guideline.

What exactly are service level agreements?  These contracts define the overall functions and services that will be offered by suppliers and the amount of work that is to be provided.  Service level agreements should include the tasks that will be performed, performance measures, process constraints and key responsibilities.

One of the most important components of service level agreements is the measurement of performance.  Criteria should be set that will be used to evaluate the supplier’s work and determine what constitutes a successful completion of a project.  When done correctly, performance metrics should motivate the buyer and supplier.  It is crucial that measurements used are set to reasonable performance standards.  

The Statement of Work & Service Level document provided by Everest Research Institute incorporates all of these key components and more.  It helps identify the business objectives of the outsourcing initiative and describes the in-scope processes.  Process constraints and a responsibility matrix, outlining the areas of responsibility, are included in the Statement of Work & Service Level document.  By utilizing this comprehensive template, buyers can save time when negotiating service level agreements and can ensure that all critical issues are covered.

There are many other factors, in addition to service level agreements, that go into establishing a successful outsourcing arrangement.   Companies considering outsourcing must carefully analyze the market, project specifications and overall objectives to determine if it is the right move.  Everest Research Institute provides valuable insight into the outsourcing market and helps clients determine if outsourcing is a wise business strategy.  Through interaction with thought leaders and access to valuable research offered by Everest Research Institute, companies are able to make better decisions about how to use outsourcing and choose suppliers.

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