In today’s competitive business environment of downsizing, tight budgets, and reduced resources, contract insourcing and outsourcing have become increasingly effective business tools in helping to achieve productivity gains and increase profitability.
As a manager, the responsibility rests with you to ensure your organisation effectively negotiates, manages, and monitors SLAs in key areas of the business. Formal Service Level Agreements (SLAs) between the customer and the provider of a service are one of the keystones of management. They protect both customer and supplier. They are as appropriate to in-house services as they are to a commercial service. By embracing the business case of the customer, SLAs can help to justify investment, ease capacity and resources planning, justify resource, and establish appropriate value and quality. Establishing your SLA a complex undertaking where it is the only proof and description of what you receive in an outsourcing deal. The SLA records a common understanding about services, priorities, responsibilities, guarantees, and warranties, it is a significant tool for managing expectations, improving communications, clarifying responsibilities, and providing an objective basis for assessing service effectiveness
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