Customer Service Levels, an Idea Whose Time Has Come
These days, service levels are an integral part of outsourcing relationships. Reflecting the principle that “What gets measured, gets managed.” , the parties to an outsourcing relationship will establish specific metrics to be achieved by the supplier in performing services under the agreement, e.g. 99.99% server uptime in an infrastructure outsourcing or a call abandonment rate of less than 6% for help desk services. The service levels will be linked to penalties for failure to perform and termination rights in the event of consistent under-achievement. Suppliers may not love the idea of committing to service levels, but they recognize the . . . [more]


