Outsourcing andService Level Agreements
What is it?Outsourcing refers to the process where abusiness contracts with a third party serviceprovider to provide servi...
Advantages of Outsourcing1. Can be cheaper (overseas labour costs)2. Access to specialist expertise3. Access specialist te...
Disadvantages of Outsourcing1. Loss of management control (prioritydifferences)2. Reliance on outsourcing company (costlyt...
So what can the government do toreduce overseas outsourcing?• Ensure universities and TAFE’s offer the ITcourses in demand...
Service Level Agreements
What is an SLA?• A service level agreement (SLA) is anegotiated agreement between two partieswhere one is the customer and...
What is in a SLA?The SLA records the details about theresponsibilities of both parties in regard tothe service arrangement...
Typical Question• What is a service agreement and what aresome of the concerns it would cover?• SLAs would certainly be im...
Typical Question• What is a service agreement and what aresome of the concerns it would cover?• SLAs would certainly be im...
Upcoming SlideShare
Loading in …5
×

3BAIT Outsourcing and SLAs

408 views

Published on

Published in: Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
408
On SlideShare
0
From Embeds
0
Number of Embeds
7
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

3BAIT Outsourcing and SLAs

  1. 1. Outsourcing andService Level Agreements
  2. 2. What is it?Outsourcing refers to the process where abusiness contracts with a third party serviceprovider to provide services that mightotherwise be performed by in-houseemployees of the business.For example a business might outsourcetheir IT Support Desk to another company.This can happen at a LOCAL orOVERSEAS level.
  3. 3. Advantages of Outsourcing1. Can be cheaper (overseas labour costs)2. Access to specialist expertise3. Access specialist technology4. Allows the business to focus on theirown work.5. Less management required. (hiring andorganising office space, holiday and sickpay).
  4. 4. Disadvantages of Outsourcing1. Loss of management control (prioritydifferences)2. Reliance on outsourcing company (costlyto replace if you change serviceprovider)3. Access to companies private information.4. Problems with cultural and accentmisunderstandings (overseas)5. Loss of Australian jobs to overseas ITcompanies.
  5. 5. So what can the government do toreduce overseas outsourcing?• Ensure universities and TAFE’s offer the ITcourses in demand• Offer incentives for Australian companies toemploy Australian IT workers (tax breaks).• Offer scholarships and financial rewards tostudents who want to choose careers in IT.• Introduce laws which restrict the amount ofoverseas outsourcing Australian companies canuse.
  6. 6. Service Level Agreements
  7. 7. What is an SLA?• A service level agreement (SLA) is anegotiated agreement between two partieswhere one is the customer and the other isthe service provider.• It is typical that SLAs are negotiated upfront and are a legally binding contract.
  8. 8. What is in a SLA?The SLA records the details about theresponsibilities of both parties in regard tothe service arrangement.•It includes details regarding maintenanceprocedures, down time allowances,warranties, privacy issues and procedures,security procedures, and responsibilities ofboth parties
  9. 9. Typical Question• What is a service agreement and what aresome of the concerns it would cover?• SLAs would certainly be important in anoutsourcing relationship but aren’t justused in this area. You enter a SLA whenyou enter into a mobile phone plan.
  10. 10. Typical Question• What is a service agreement and what aresome of the concerns it would cover?• SLAs would certainly be important in anoutsourcing relationship but aren’t justused in this area. You enter a SLA whenyou enter into a mobile phone plan.

×