Swot Case - Service Level Agreement (sla)

CIMISO

Tutorial 11

1. What is Service Level Agreement (SLA)?

A negotiated agreement of common understanding, between customers and service providers, which defines the service(s) provided along with their expected levels of performance, and corresponding penalties and consequences for non-compliance'.

2. You are the Head of IT Service Operation and Delivery of a software house looking forward to getting a successful tender for managing the entire computer operations of an insurance company.

Prepare a draft proposal of a Service Level Agreement (SLA), including the necessary components, as one of the initial requirement for the tendering process.

Agreement components:

1- Parties involved in the agreement: the parties in this agreement IBM Company as a service provider and Wal-Mart Company as a customer.

2- Service Provision: IBM Company as a service provider offers Wal-Mart Company a full package as they buy the hardware servers and the pc computers which contains of sending the equipments, installing, maintenance and training.

3- Performance Measurement and Criteria: The availability of the service and the timeliness of service based on the agreement the service provider should performed the terms and conditions as it mentioned in the agreement.

4- Financial or Cost of Service: the cost of services which including the equipments except if there is any additional equipments or services, in this case it will cost the customer additional cost and service.

5- Measurement of Service: management responsibilities and constitutional of service level agreement monitoring, formal meetings weekly, fortnightly or monthly. For example, reporting shall be presented quarterly to encompass all service activity and meter readings per user account per device by function.

6- Restrictions and Confidentiality: as it is mentioned in the agreement the service provider must cover the support for specified service and/or hardware, software for example, if a device cannot be repaired on-site, a replacement of equal capability maybe introduced to lessen downtime.

7- Financial penalties and Negotiation: the two companies has agreed and signed in the agreement that they must follow the conditions and terms as it mentioned in the contract. Therefore, penalties executed if customer or client shortening in payments as well as for the service provider if there is any shortening in delivery the equipments or any shortening in the quality of the devices.

3. Examine the benefits of realising a Service Level Agreement (SLA) between you and the outsourcer.

a. establish performance levels of internal operations

b. clients