Posted on October 6, 2021
In today`s outsourcing environment, incentives or sanctions can be an effective tool for service management in the SLA. If the services received do not meet the requirement, direct outcomes, such as reduced compensation or credit, would follow future services. The main purpose of SLA is to define and explain performance expectations and establish accountability. It is therefore essential to reconcile the need for precise measurement standards with adequate adaptability. A typical trap is inappropriate oversight or “micro-management” of the service provider, which can make it difficult for bankers tasked with monitoring the service provider relationship and monitoring ASAs. . . .