A wide range of industry sectors will outsource service provision (for example, banking, pharmaceuticals, and insurance companies). This can happen where an organisation outsources its IT payroll needs, its helpdesk and IT maintenance requirements, its payment processing, or its whole IT function.
The key risk
The key risk for an organisation that enters into an outsourcing transaction, are that the services that it receives from the supplier will be worse than the services they were receiving before, or that the cost savings that were anticipated or promised, are not achieved.
The SLA
To try and avoid this scenario, the outsourcing contract should include a Service Level Agreement (SLA). The SLA must be drafted to govern the standard of service that you require, including the cost of those services and the consequences of not achieving pre-agreed standards.
The wider environment
While Service Level Agreements are a key method, within ITIL, for setting out how two parties have agreed that a specific service (usually, but not necessarily, IT-related) will be delivered by one to the other, and the standards or levels to which it will be delivered, the basic concept is now far more widely applied than just in ITIL® and ITSM environments.
This pocket guide provides information and guidance on SLAs to those in the wider environment, from a legal and practical view point.
The benefits and the pitfalls
Identifying some of the benefits and the pitfalls that an organisation can encounter when negotiating and drafting SLAs, this pocket guide provides an overview of SLAs, highlighting typical scenarios that can arise, and provides information on typical solutions that have been adopted by other organisations.
By reading this a short, legal and practical guide to SLAs, you should be able to quickly come up to speed with some of the legal and practical issues that might arise. Negotiating the SLA and putting the SLA into action are also discussed in the pocket guide. Whilst short and easy to digest, case references and weblinks have been provided in the text so readers can find out more information about SLAs
Jimmy Desai is a partner at law firm Beachcroft LLP, in the City of London, and has been advising upon, formulating and implementing SLA contracts and strategies, benefits and cost savings for businesses, since the mid 1990s. Throughout his career he has advised major international blue-chip companies, governments, industry bodies, IT customers and suppliers on their service level agreements. Jimmy writes extensively for a wide range of IT publications, and lectures at international conferences. He is a member of TIPLO, ITMA, SCL, EuroITcounsel, Intellect, and ITechLaw. In the International Whos Who of Internet and E-Commerce Lawyers 2010, Jimmy is listed as one of the top 40 Internet and e-commerce lawyers in the UK.
