Outsourcing and SLA Definition

This gives anybody familiar with the cost and use aspects of a system the best basis for successful outsourcing negotiations.

This is useful for both parties. The outsourcing provider has a clear basis for making calculations and can submit an accurate and firm quote to which he can commit himself over the long term.

For the outsourcing client, comparing different outsourcing quotes is no longer a matter of gazing into a crystal ball. Using a VMS business management model as a basis, he can compare the individual components of the quote and make the right decision – all based on the VMS Report.

The relationships between the IT department and an outsourcer are long-term but companies develop dynamically. Both their cost and organizational structures have to be continually reviewed – as does quality, too, of course.

Do service-level and price match? Has cooperation been organized as well as it could have been? Is there any work being duplicated or are there gaps? Has cooperation also been organized as well as possible in case of problems? How far have we actually moved away/on from the situation for which the outsourcing agreement was concluded?

These are all questions which have to be answered a lot more often than every five years, the typical renewal cycle of an outsourcing agreement.

Today, calling in a neutral expert to verify an outsourcing agreement once every year or two years is part of the standard operating procedures of a good outsourcing agreement.