Delivery Agreement For Outcome 10

The results-based contract is not an instrument for clients to shift their responsibilities to their service providers and try to avoid the effort and time required for good governance and performance. It is an operating model that requires a strong relationship between customers and service providers, trust and a real allocation of risk and return. Make sure the metrics reflect factors that are under the control of the service provider. To motivate good behavior, SLA metrics must reflect factors that lie in the control of the extern externator. A typical mistake is to sanction the service provider for delays caused by the customer`s lack of performance. In return, the service provider must want to direct its activities with the client and have confidence that the client is committed to a real risk and return model. If a customer does not understand what the results-based contract is (and perhaps confuses it with an output-based contract, as this statement suggests), the customer`s expectations are already poorly coordinated with those of the service provider and each of the parties should commit to it. A service level agreement (SLA) defines the level of service a customer expects from a provider and defines the metrics against which that service is measured and the corrective actions or penalties if the agreed service levels are not met. Normally, there are SLAs between companies and external suppliers, but they can also be between two divisions within the same company.

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