An SLA plays a very important role when contracting out a project. It identifies the borders of any project with regard to the services and the functions that a service provider will offer the customer. A properly defined service level agreement states the expectations of both parties correctly and measuring the progress and performance of the services accurately. The metrics of performance is the essential part of a good SLA. During the contract, the metrics are used to evaluate the performance of the service provider and tell if it meets the standards and commitments according to what is agreed upon by the two parties involved.
Choosing the right metrics to test the performance of a project or business is a very critical step in an outsourcing commitment. Many metrics are necessary to control the different aspects of a project SLA. For example, there are several factors and principles to consider when selecting the right service level agreement metrics to achieve the objectives of the project. Select the right measurement to encourage the proper behaviour of the two parties. They must understand each other. The service provider must make sure that the SLA will benefit both of them. It must be two-sided. Select easily gathered measurements. All metrics must be taken easily. That means a little amount of time and money should be required for all the metrics of a particular area of the project SLA. Refrain from selecting too much number of metrics. The metrics must be easily understood and simple. The metrics must also be defined to achieve useful and objective level of performance by putting the right baseline. Both parties must establish the right and appropriate metrics depending on their agreement.