Report: SLA Failures Boost Outsourcing

Verfasst von
Paula Musich
Paula Musich
Published: Sep 5, 2005
Updated: Feb 2, 2021
2 minute read
eWeek Inhalte und Produktempfehlungen sind redaktionell unabhängig. Wir können Geld verdienen, wenn Sie auf Links zu unseren Partnern klicken. Mehr erfahren

Both enterprises and service providers are expanding their use of service-level agreements but say they believe that the failure to meet the agreements could lead to more outsourcing of IT operations.

Service-level management provider Oblicore Inc., in its third annual survey on the use of SLAs, due out this week, found that of 140 IT professionals among enterprises that use SLAs internally, many believe that problems in complying with those SLAs could result in more IT jobs being moved offshore.

Of the 140 enterprises surveyed, 42 percent said that outsourcing is a potential outcome for not meeting SLAs.

But the upside to employing SLAs for measuring the performance of internal IT operations is that it can open the door to improvements, according to an IT and networking engineer at a European service provider, who asked not to be named.

/zimages/1/28571.gifSinglestep revamps process automation software.Click hereto read more.

“When we created the first [internal] SLA, the figures werent that good. But by exposing them to everyone in the company, things were set in motion, and now we see the services have been improved and our internal clients are much happier with the services were delivering,” said the engineer, an Oblicore customer.

/zimages/1/28571.gifClick hereto read about the challenges of outsourcing in China.

Both the enterprises and the 156 service providers surveyed expect the number of SLAs to continue to grow over the next year.

“We are seeing an increase in the use of SLAs,” said the Oblicore customer. “Internally, we now report on 90 percent of the IT services.”

The report, “Trends in the Use and Management of Service Level Agreements,” showed that 42 percent of providers arent meeting SLAs 90 percent of the time.

A 10 percent failure rate that affects critical services such as disaster recovery or banking applications could be costly to the service provider, according to officials at Oblicore, in Columbia, Md. And penalties for failure to meet SLAs can be costly. Among the service providers surveyed, 88 percent have SLAs that impose penalties.

/zimages/1/28571.gifCheck out eWEEK.coms for the latest news, reviews and analysis on IT management from CIOInsight.com.

eWeek Logo

eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site's focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

Eigentum von TechnologyAdvice. © 2026 TechnologyAdvice. Alle Rechte vorbehalten

Werbetreibenden-Offenlegung: Einige der auf dieser Website erscheinenden Produkte stammen von Unternehmen, von denen TechnologyAdvice eine Vergütung erhält. Diese Vergütung kann beeinflussen, wie und wo Produkte auf dieser Website erscheinen, einschließlich beispielsweise der Reihenfolge, in der sie erscheinen. TechnologyAdvice schließt nicht alle Unternehmen oder alle auf dem Marktplatz verfügbaren Produkttypen ein.