Design Service Level Agreements in Outsourcing Contracts

This paper took an in-depth look at service level agreements in outsourcing context. Service level agreements play an important role to guide outsourcing management to eliminate outsourcing risk. The goal of designing service level agreements is to bridge the gap between outsourcing service vendor and the customer. This paper addresses the specification of service level agreements on the basis of theoretical principles and proposed an approach to improve the performance of service level agreements. Six Sigma is one of the useful tools to improve management performance and was applied to the outsourcing service sector. Based on the analysis, the process of designing outsourcing service level agreements is discussed. Finally, the consideration for applying Six-Sigma in service level agreement development was discussed.