Key Service Level Agreements and Contract Provisions

Management should include SLAs in its outsourcing contracts to specify and clarify performance expectations, as well as establish accountability. These SLAs formalize the performance criteria against which the quantity and quality of service should be measured. Management should closely monitor the service provider's compliance with key service level agreements. To ensure an effective oversight program, the institution should develop:

  • A formal policy that defines the SLA program;
  • An SLA monitoring process;
  • A recourse process for non-performance;
  • An escalation process;
  • A dispute resolution process; and
  • A termination process.


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