Explain The Use And Value Of Formal And Informal Service Level Agreements
Simply having service level agreements is not a guarantee that they will be respected. If an agreement is negotiated with management and then buried somewhere in a file, the person actually doing the job may not be aware of the expectations it has. It will therefore help to ensure compliance with the requirements by looking at the standards and basic measures that apply to the task. Although the details of service level agreements (SLAs) are as different as the services they could cover, a full ALS will generally contain the following: ALS is widespread in the information technology world, as companies often depend on external services such as cloud computing, hosting, etc. However, almost all business relationships can be governed by a service level contract. Service level agreements are also defined at different levels: the result is that the service provider`s dashboards, while viewing their performance as green, the customer experience is closer to „red status“. The name „watermelon effect“ is invoked by this color effect: like a watermelon, ALS is green on the outside and red on the inside. The increasing reliance of companies on the outsourcing of information technologies has drawn management`s attention to a number of skills in managing relationships with service providers. While some recent studies have shown that the ability to effectively manage relationship exchanges can improve different dimensions of organizational performance, relatively little analysis has been done on how companies use contracts strategically to successfully manage their business-to-business relationships.
An extension of past studies that emphasize the importance of contractual and service level (SLA) agreements, the study develops an integrative and conceptual framework for the structuring of ALS in IT outsourcing arrangements that are part of governance theory. With a careful description of the evolution of measurements and rigorous statistical validations, he contributed to the development of instruments for a series of 11 first-rate contractual factors and their relationship to three second-rate substantive factors.