Service Level Earn Backs in Outsourcing: Thinking About the Issues
As service levels and service level credits have become a standard component of outsourcing agreements, service providers have responded with requests for earn backs: the right, if a specified level of performance is achieved, to earn back, or not have to pay, the service level credit. However, if earn backs are to be included in an outsourcing agreement as part of a service level regime, they need to be defined carefully at the beginning and integrated into the service level methodology: when they are included late in the game, as a concession granted by the customer in response to a . . . [more]
