The Service Level Management (SlM) process is responsible for finding a realistic trade-off between the needs, expectations, and costs of associated services so that they are acceptable to both customers and the IT organization. It also aims to ensure that an agreed level of IT service is provided for all current IT services and that future services are provided to the agreed achievable objectives. Service Level Management is also responsible for ensuring that all appropriate operational-level agreements and underlying contracts are in place to monitor suppliers and other groups. “In this context, an OLA becomes a record of common assumptions and interdependencies at the level of shared and overlapping processes between the different parties involved in the provision of services,” explains Les Druitt, founding director of outsourcing consultancy Sourcing Advisory Services. “This is where rubber hits the streets in multi-stakeholder outsourcing.” Whatever the silo or problem, without a firm understanding and agreement on performance, responsiveness, authority and responsibility, there will always be problems with finger pointing and communication. This is simply because each silo has its own primary responsibility. For example, the main responsibility of software development is to develop software. The main responsibility for networking is the maintenance of transmission systems. What may seem like a big problem for a silo that requires an immediate response may not be as important for another silo. Companies often have several internal groups, all of which provide support in one way or another.
Indicate the penalties and procedures if the parties to the OLA do not meet the conditions of the OLA. Key interactions include work planning; Provision of operational data, information and reports; Integration of activities with the service centre; coordination of changes; Management of cross-functional services; and governance and dispute resolution. It is also important that the OLA explicitly state that, although the client is not a party to the OLA, this is what lawyers call a “third party beneficiary” of the agreement. “This allows the client, but not, to apply the OLA on their own behalf if they wish,” Zahler explains. .