For the metrics obtained to be useful, it is necessary to define an appropriate baseline, with the measurements set at a reasonable and achievable level of performance. It is likely that this baseline will be redefined throughout the participation of the parties to the agreement, using the procedures defined in the “Periodic Review and Amendment” section of the ALS. IT outsourcing agreements, in which the remuneration of service providers is linked to the results obtained, have gained popularity, with companies developing from time and pure materials or full-time price models. In the next section, the summary statement of the agreement should contain four elements: Service Level Management (SLM) is defined as “responsible for all service management processes, all agreements at the operational level and the underlying contracts are tailored to agreed service level objectives. SLM monitors and reports on service levels and conducts regular customer evaluations. In the case of long-term contracts, the parties must verify the performance of the services. Provisions for reporting, meetings, information provision and dispute escalation procedures are sometimes included in the AES and not in the main part of the agreement. Unfortunately, such provisions are often overlooked, but for a service contract to be successful, it is essential that contract management procedures are agreed and effectively followed. In a service-based ALS, all clients working with the service provider benefit from similar conditions. For example, a cable TV provider displays the services it offers to all its customers, as well as the additional services or channels available as part of the package.
Define carefully. A supplier can optimize ALS definitions to ensure they are met. For example, the Incident Response Time measure is designed to ensure that the provider corrects an incident within a minimum of minutes. However, some providers can complete ALS 100% by providing an automated response to an incident report. Customers should clearly define ALS so that they represent the intent of the level of service. Among the most important elements of a service level agreement are: Select measures that motivate good behavior.