Gartner Research

Ensure Application Service Contracts Have the Right Service Levels and Penalties to Be Effective

Published: 29 March 2016

ID: G00298634

Analyst(s): William Maurer, Kris Doering, Gilbert van der Heiden

Summary

Organizations are not receiving expected results from outsourcing application services due to poor service-level agreements. Sourcing managers must work with their application leaders to define and enforce the right metrics to ensure quality and timely delivery from application service vendors.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Define, Prioritize, Measure and Enforce Your Most Critical Application Service Levels
  • Include the Right Penalties and Earn-Back Process to Drive the Right Behaviors
  • Communicate Metrics and Responsibilities to Allow the Organization to Govern Service Provider Performance

Case Study

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.