Selecting The Right Service Level For Your Outsourcing Model

Many sourcing professionals ask Forrester about the "standard" service levels that should guide their outsourcing relationships. Yet in practice, the efficiency and effectiveness of service-level definitions is highly dependent on the individual outsourcing engagement: In general, higher levels of service responsibility imply higher levels of accountability from services providers — and more sophisticated service-level models. Sourcing and vendor management (SVM) professionals who want to improve their service-level definitions need to move away from a "one-size-fits-all" approach to service definitions and recognize that service levels must be closely linked to their underlying sourcing models. By carefully aligning service-level requirements with their business expectations well before starting a vendor selection process (e.g., RFP, contracting), SVM professionals create far greater accountability and set both their vendors and themselves up for a successful outsourcing relationship.