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Service Level Agreement Disadvantages

Security should be an important provision of any contract for the development of outsourced software or hosted services, experts say. When developing the outsourced code, companies should have the right to check the code and parties should agree that all bugs will be fixed before the final product is delivered. The contracting entity should have the option of terminating a business contract if the subcontractor does not meet its security obligations, either for code development or for a hosted service, including the management of the risks associated with the use of subcontractors. But a growing number of companies are calling for software development and service provider agreements to include security rules, which is changing the competitive landscape, especially when it comes to outsourcing. Partha Ghosh, Director of Supply Chain Management at ARI, agrees. “The downside of ALS is that it formalizes expectations in a contractual context, which can affect the relationship between partners,” Said Ghosh. “As a result, the service provider can probably focus on meeting only the customer`s minimal expectations and not necessarily be interested in exceeding expectations, as the consequences of a failure may be significant enough to prevent the provider from doing more than is necessary.” For service providers, ALS must include availability and availability requirements, security response and alert procedures, security personnel qualifications and correct time. The ALS should provide penalties for non-compliance. In every business, you always say to yourself, “The customer is always right.” In other words, any expectation that the customer has is written in the Service Level Agreement or SLA. ALS generally describes basic services for clients and describes their responsibilities to ensure that each concept is adhered to in accordance with ALS. Customer feedback is one of the reasons why products and services are constantly innovative.

While ALS has some advantages and disadvantages for customers, it all comes down to what was agreed before the contract was signed. “If you`re not able to implement these security practices from scratch in this climate, you won`t succeed,” says David Bixler, head of information security at Mason, Ohio-based Siemens Business Services, which provides hosted IT services to giants such as Intel, MetLife and Kemper Insurance.