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How To Build Effective Business Service Levels Within Your Applications Outsourcing Contract

So how exactly do you build effective, end-to-end business service level agreements within your applications outsourcing contract?


build image.jpgWell first you start with service provider that has a proven approach - and this includes a framework with measures, tools and templates that aligns IT to the business.   Their approach should begin with well defined components that make up a business service level.  For example, at HP we have developed seven areas that are defined for each service level. They include: Service Measure, Measurement Times, Correction Window, Measurement Period, Measurement Definitions, Acceptable Percentages, and Circumstance for Non-Performance.


Next, the service provider should follow a well designed and documented process for creating the BSL agreements.

Ist - The service provider needs to understand your specific business process and success criteria. 


2nd - Your service provider must understand what their responsibility is… in other words, what is the part of the business outcome that their team supports? Once you both know that, together you can define the service level components that support your business requirements. 


3rd - The service provider collaborates with you to identify how to measure the business process.  This is also the point at which you both will define and agree to the requirements for a successful outcome. 


A good service provider will insert all this detail into your contract.  A solid business service level contract should always reflect consistent alignment in your provider’s service to support your business outcomes. It also gives you added confidence in your provider as you now have one throat to choke… or one neck to hug


Finally, once you get to delivery, the service provider will need to track against the measurement definitions and manage the component pieces. In the event your provider misses the service level, they should be able to easily identify the root cause and implement preventative actions.  Being able to track against the business process allows your service provider to have an advantage, as they can trend the outcomes and begin to better manage your expectations. 


Remember a good service provider’s end-to-end BSL agreements should implement shared success measures, such as key performance indicators, with the capability to systematically measure, monitor, track, report, and continuously improve the desired outcome of your IT environment.


Ultimately, with this new transparency into how IT supports business processes both the business and IT can align and begin to…

  • Manage by objective,
  • Measure what matters most,
  • And, spend smartly.


Learn more

Visit the HP Applications Management Services page.


See how HP Applications Management gives you control of your investments and business outcomes HP Applications Management Services (3:25 min, video) and continue the conversation by finding out how HP can help you on your way to becoming an Instant-On Enterprise.

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