The first type of service level agreement structure is service-based ALS. A service-based ALS covers a service for all customers. Consider that the IT service provider provides customer service to many customers. In a service-based service level agreement, the level of service in customer consultation is the same for all customers who use this service. Yes, for example. B The financial department and the human resources department are two clients who use this service, the same ALS applies between the IT service provider and these two services, since it is a service-based ALS. Management should develop ALS by first identifying the essential elements of the service. Items can be linked to tasks (for example. B processing error rate, system operating time, etc.) organizational (i.e., staff rotation). Once management has identified the elements, it should find ways to objectively measure the performance of these elements. Finally, institutions should determine the frequency of measurements and an acceptable range of outcomes to determine when a service provider is violating ALS repositories.
For example, you are a customer of a bank and the bank provides you with services. A service level agreement between you and the bank describes the services provided and the levels of service to which they are provided. For example, you can withdraw money at an ATM with the bank, and the transaction does not last more than 10 seconds. This is an example of agreement on service levels and is part of service level management. The main objective of ALS is to define and explain performance expectations and establish accountability. It is therefore essential to balance the need for specific measurement standards with appropriate adaptive capacity. A typical trap is inadequate monitoring or “micromanagement” of the service provider, which can make it more difficult for bank staff to monitor the service provider relationship and monitor ALS. In an agreement on the service level contract, it is stated what both parties want to achieve with their agreement, as well as an overview of each party`s responsibilities, including expected results with performance criteria. A service level agreement usually has a duration specified in the agreement. All services included in the agreement are described and may also contain details on procedures for monitoring the performance of services as well as on reflection procedures. Service level agreements are the first step in creating a relationship between a service provider and a customer.
If we realize what is expected of each party, there can be transparency and confidence on both sides. Regardless of the type of service level agreement signed, each party can now be held accountable in order to maintain its end of good deal. Sometimes it is necessary to compromise when the service provider does not have the resources to meet the client`s requirements. In this case, the client may be forced to review its requirements and the service provider may be forced to invest in more resources. Such compromises create a good working relationship between the service provider and the client. Service level agreements contain measures to measure the service provider`s performance. It can be difficult to choose fair measures for both parties. It is important that the measures are controlled by the service provider. If the service provider is unable to control whether the metric is executed in the specifications, it is unfair to hold them to account for the metric.