This last point is crucial. Service requirements and supplier functions are changing, so it is necessary to ensure that ALS is kept up to date. Most service providers have standard SLAs – sometimes several, which reflect different levels of service at different prices – which can be a good starting point for negotiations. However, these should be audited and modified by the client and the lawyer, as they are generally favourable to the supplier. IT outsourcing agreements, in which the remuneration of service providers is linked to the results obtained, have gained popularity, with companies developing from time and pure materials or full-time price models. Each of us in the financial institution community has a responsibility to understand the really important business events taking place in our organization. We must then be sure to communicate with our various suppliers about the importance of these upcoming events. Finally, a risk management topic for suppliers, where most credit managers feel they are doing well. After all, tell the seller what you expect and they agree. Can it be difficult? It is not difficult if all goes well.

It is when the unexpected happens that you will end up dusting off these SLAs and trying to determine what leverage you have to force a behavior difference. Forget the legal stuff for a minute; They just want a change in their performance. The ALS should contain not only a description of the services to be provided and their expected levels of service, but also metrics to measure the services, obligations and responsibilities of each party, corrective measures or penalties in the event of a breach, and a protocol for adding and removing measures. In this case, the supplier insures itself by adding to each table sold a small premium covering the payment in case of error. In fact, I do not think suppliers literally include a premium in their calculations, but it is implicitly there. You only have a premium that involves covering this type of fee. With a well-written ALS, you can see more money if your business is operating on dedicated hardware rather than as a service from a supplier. This would also be the case if on-site services were provided by a service provider that offers on-site contracts because the devices are not used by several parties. Any meaningful contract without associated ALS (verified by legal advisors) is open to deliberate or involuntary interpretations.

AlS protects both parties in the agreement. Measures should be designed so that bad conduct is not rewarded by both parties. If z.B. a service level is violated because the customer does not provide information on time, the provider should not be penalized. Typically, these processes and methods are left to the outsourcing company to determine that these processes and methods can support the ALS agreement. However, it is recommended that the client and the outsourcing company work together during the SLA contract negotiations to clear up misunderstandings about the support process and method, as well as management and reporting methods. Redmond Worldwide helps your business measure and maintain the performance and competitive efficiency of ALS infrastructure and processes. We will review your DSA agreement to ensure that you will be taken care of at the time of an outage. However, in the case of critical services, customers should invest in third-party tools to automatically collect sLA performance data that provide objective performance measurement. SLAs are an important part of any subcontracting and technology provider contract.