Some prefer contracting out a service rather than their own personnel performing the service.  It has been found to be more economical and saves you time on monitoring how well performance has been carried out towards attainment of the company’s goal.  To lighten the burden of the company is to hire a company who will provide the services that would handle the services as required from them and see to it that the services are delivered as agreed upon. 

The part of a service contract wherein the level of service or performance is defined is called service level agreement. It is an agreement or contract entered between customers and service providers.  It accounts for the common agreement between parties as to the services priorities, responsibilities, guarantee, etc. The service level agreement may indicate the levels of availability, serviceability, performance, operation or other attributes of the service like billing and even penalties should there be non compliance with the SLA.

A SLA basically includes all the terms and condition of what the customer expects from a service provider.  It is the task of the service provider that prior to contracting the terns have been cleared out and explained.  It is also important that the service provider is agreeable to the terms because this becomes binding and non-conformance is subject to penalties.

So why would you go into struggling into doing all the things for your company when you can hire a service provider to help you out in delivering your service to your customers. Sit down with your service provider and define clearly your terms and conditions on how you would want the services done. Put them in writing and come up with a service level agreement. 


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