Business models have changed. Businesses have transformed. The services that support businesses are delivering innovation. Why then have Service Level Agreements (SLAs) remained stodgy, reflecting little of the dynamism of current business norms? The reasons are not very obvious.
SLAs define and bind the relationships between businesses and service providers. But their primary focus continues to be on penalty (refund) for failure. In reality, SLAs need to move on, evolve and be aligned with business outcomes. If the service provider is seen as a partner, the responsibilities of business outcomes should be tied in with SLAs. Logical, right?
It is logical, but reshaping and customizing SLAs for business outcomes remains difficult to achieve.