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Define Service Levels in Outsourcing Contracts

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Defining service levels in an outsourced service contract is crucial. Without such clear parameters, a facility executive might get less than was expected, or much more than necessary – along with a higher price tag. Not having defined service levels and objectives also makes it difficult for the service provider to do a good job. Identify all the services the provider will be responsible for and develop specifications that indicate the level of service expected, using description and measurement where possible. The majority of the goals should be performance based, rather than prescriptive, freeing the provider to use its experience and resources. Make the definitions easy to read, consistent and brief, and combine them with business objectives and measurements to focus performance.