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Monitoring, reporting, renegotiating and adjusting the metrics should be an ongoing process.

You expect your internal units to be flexible, responsive to the business climate and provide a competitive advantage to your organization, the same thing should be true of your outsourcer and the SLAs reflect those expectations.

It should detail the customer expectations, measurement of the service, calculation of the metrics and outline the process for correction and reporting and provide for remedies in the event of failure.

If you can identify metrics that are clear, have well defined credits/penalties for non-performance which are appropriate and that satisfy the above points both you and the provider can manage your resources more effectively.How should the measurements change if the customer’s requirements change over time?If you pay bonuses internally for good work, shouldn’t you do the same externally?In this article we address designing SLAs that fit the business’ need and live past the lifecycle of the negotiations.SLAs provide the ground rules for interaction between providers and their clients, and establish the baseline against which expectations are set.

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Again, the cost of errors in such a project is significantly higher to you than hiring the contractor.