Advantages and disadvantages of a service level agreement.

Advantages and disadvantages of a service level agreement. In order for a service level agreement to benefit the companies involved, it must be created with the cooperation of both parties and requires a lot of time and effort. For each type of service and customer, the provider company must enter into different agreements (SLAs) because the needs and expectations of customers are different. They are very useful because they create a close working relationship between the service provider and the customer and prevent the high costs of an unnecessary or costly procedure to ensure a level of quality not required in the agreement. Sometimes, when there is no careful management of the SLA, it degenerates into a general labor contract, thus not receiving the real benefits that could be achieved.

Advantages and disadvantages of a service level agreement. Errors that lead to failure of the agreement may include: disagreement with certain performance indicators, inappropriate analysis of various characteristics, non-identification of the person responsible for collecting data related to characteristics, lack of production mechanisms, performance reports and procedures for solving problems that do not involve managers in relationships . Service Level Agreements guarantee service improvements that have previously been implemented in a certain way, providing service solutions at an affordable cost to meet market needs. SLA cannot replace poor customer management or service support that cannot be implemented without costs or resources, and they cannot be effective if both parties are not involved (Hiles, 2000).

Some of the goals of service level management are:

  • determine, document, coordinate, track, measure, write reports and analyze the level of IT services provided;
  • “seek” and improve relationships and communication with the market and customers;
  • ensure that the goals specified in the contract are measurable and designed for all IT services;
  • to control the client and increase his satisfaction due to the quality of the services provided;
  • make sure that all departments of the company, service providers, to which it pays for the provision of services to its customers, clearly take into account the expectations of the desired and agreed level of service.

This is the name given to the planning, coordination, coordination and monitoring process. Benefits of a Service Level Agreement or Service Level Agreement, as well as the process of reviewing subsequent improvements to meet customer needs by achieving specific goals and quality of service. proposed. Service level management should provide a point of regular contact (through reports) and communication with customers and managers, plus it should manage the expectations and perceptions of the market, customers and 34 users to ensure that the quality of services provided by the service company meets expectations and needs.

It is for these reasons that contracts called SLAs are signed.

How to implement SLA. This is not only the final product, but throughout the process of negotiations by agreement between the parties communication relations can be established;

  • a tool to prevent future “conflicts”. This type of contract helps to avoid discussions, because it provides a common understanding of the needs and priorities of each company;
  • “living” document, that is, it develops and changes. At a predetermined time specified in the initial agreement, the parties involved revise the agreement to ensure the adequacy of the services provided. If discrepancies are found, the parties negotiate until adjustments are found to bring the service to an agreed level;
  • an objective basis for measuring the effectiveness of the services provided.

Service Level Management. A service level agreement is part of a broader concept called service level management, often abbreviated as SLM. Service level management is part of two processes that are at the stages of a service’s “life cycle”: service design (SD) and continuous service improvement (CSI).