SLA + internal/external relations Flashcards
What is insourcing/in-house development?
It is when a company decides to do certain tasks/services internally instead of hiring an outside company to do them.
What are the advantages and disadvantages of insourcing/in-house development?
Advantages:
1. More control over the quality and delivery of tasks/services
2. Better knowledge transfer and skills development among in-house staff
3. Reduced risks of intellectual property theft
Disadvantages:
1. Significant investment in resources, such as hiring and training staff, setting up infrastructure, etc.
2. Limited access to specialized expertise
3. Higher overhead costs and administrative burdens
What is outsourcing?
It is when a company decides to hire another company to do certain tasks/services for them.
What are the different types of outsourcing?
- Onshore
- Offshoring
- Nearshore
Explain the 3 types of outsourcing.
Onshore: hiring another company within the same country
Offshoring: hiring another company in a different country
Nearshore: hiring another company in a nearby country (mainly used in Europe)
What is shirking?
It is when the outsourcing company (vendor) does not do a good job or provide the quality of service that was agreed upon, while claiming full payment.
What is poaching?
It is when the outsourcing company develops a strategic solution for a client and then uses it for other clients (could eventually be a competitive treat).
What is opportunistic repricing?
It is when the outsourcing company increases their prices unexpectedly, even if there was an agreement on the initial pricing.
What is a service level agreement (SLA)?
It is a contract between a service provider and their customer that outlines the services provided, quality standards, and consequences for poor performance. It ensures the customer knows what to expect and what happens if expectations are not met.
What are the key components of an SLA?
- Agreement overview
- Description of services
- Exclusions
- Service performance
- Redressing
- Stakeholders
- Security
- Risk management and disaster recovery
- Service tracking and reporting
- Periodic review and change processes
- Termination process
- Signatures
What is the purpose of the agreement overview in an SLA?
It provides a brief summary of the agreement that includes the purpose of the SLA, the parties involved, and the duration of the agreement.
What does the description of services component of an SLA include?
It defines the specific services that will be provided under the SLA, including the scope of the services, any service level targets or performance standards, and the resources that will be used to deliver the services.
What is the purpose of the exclusions component of an SLA?
This outlines any services or conditions that are specifically excluded from the SLA.
What does the service performance component of an SLA describe?
It describes the metrics that will be used to measure service performance and how performance will be reported to the customer.
What does the redressing component of an SLA outline?
It outlines the process for resolving disputes or addressing issues that arise under the SLA, including escalation procedures and any penalties or incentives that may be involved.
