Protect Your Business through Service Level Agreement

One way of getting help other than hiring your own personnel is through outsourcing.  As you outsource a service provider, there is a need for you to enter into a service level agreement.

Service Level Agreement sets forth the kind of service you want the service provider to render, helps both parties to clearly define their goals, discusses the limited liabilities of the parties and ensure that both parties get the services as expected and received payment of the services rendered. The following are certain terms that should contain in your service level agreement

1.  Definition of the Services to be performed as well as
     deadline required to be delivered.
2.  Provision of the amount to be paid for the services
     rendered, when and payment coverage.
3.  State in the agreement provision that states that
     relationship is not a partnership, joint venture or
     employer-employee relationship.
4.  That all information is confidential to both
     parties only.
5.  Clearly define the ownership of the Product
6.  Provision for indemnification, wherein the service
     provider will cover all expenses involving third
     party litigation resulting to breach of the warranties
7.  Provision limiting the maximum liability of the service
8.  Statement of the term and termination of the service
     level agreement
9.  Provision requiring the minimum level of insurance
     covered by the service provider
10. Provision of non-solicitation of employment from
      employees of both parties

As your organization grows, you will think of expansion. You will be faced with a lot of challenges and you will be thinking of new ideas to improve your product or services. You would need more people to help out.  SLA has been found to be convenient and economical to business organizations allowing them to focus on more important matters.

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