Managing Outsourced Vendor Contracts and Service Level

Agreements (SLA’s)
Course Duration: 1 Day

COURSE OUTLINE

The Structure of an IT Outsourcing

Components of the Vendor/Supplier
Agreement
Relationship Management (VSRM)
Process
· Code of conduct
· Registration process
· Segmentation of vendors
· Vendor assessment
· Status of Vendor
· Vendor De-registration
· Vendor Empanelment
· MOU with Vendor
· Vendor Rating/Performance
Monitoring
· Performance Evaluation
Process
· Vendor Recognition Criterion
· Vendor Termination Process
· Vendor Feedback
· Vendor Communication
· Statement of Work (SOW)
· Service Level Agreements (SLA)
· Metrics Definitions
o Choosing metrics that
promote the desired
behavior
o Choosing metrics that
reflect factors within
the party's control
o Choosing metrics that
are readily collected
o Striving for a
manageable amount
of information
o Establishing an
appropriate baseline
· Operating Principles
Purpose and Construction of a
Service Level Agreement
· Assess whether an SLA is
appropriate.
· Get management commitment.
· Designate SLA managers.
· Educate the parties involved
about SLAs.
· Assess current services.
· Gather customer feedback.
· Ensure agreement about the
agreement; create a draft.
· Solicit feedback.
· Complete pre-implementation
activities, such as establishing
tracking mechanisms and
conducting pilots.
· Implement and manage the
agreement.
Structure of an SLA
· Introduction and purpose
· Services to be delivered
· Performance, Tracking and
Reporting
· Problem Management
· Fees and Expenses
· Customer Duties and
Responsibilities
· Warranties and Remedies
· Security
· Intellectual Property and
Confidential Information
· Legal Compliance and
Resolution of Disputes
· Ending the Agreement
· General Agreement Clauses
Five Principles for Selecting SLA
Metrics
· Choose measurements that
motivate the right behavior
· Ensure metrics reflect factors
within the service provider's
control
· Choose measurements that are
easily collected.
· Avoid choosing an excessive
number of metrics, or metrics
that produce a voluminous
amount of data.
· Set a proper baseline.
Categories of SLA Metrics
· Volume of work
· Quality of work
· Responsiveness
· Efficiency
Regular SLA Reviews
· Review the criteria for the SLA
and target performance
· Measure performance for the
current period
· Analyze problems and the
impact on the user
· Negotiate corrective action plans
for the new or ongoing problems
· Assign necessary resources
Ten Misconceptions about SLAs
SLA Checklist
Ten Key Questions for Developing
Effective Service Level Agreements