1 thought on “SLAs

  1. Stephen Guth

    Jeff,

    I couldn’t agree with your response more. As you point out, the problem is a lack of integrity. Promises are made in terms of service levels, knowing they’re going to be broken by the vendor–and the penalties are baked into the deal P&L as COGS. That’s why it’s important to use the escalations model. A customer can still combine liquidated damages with the escalations model if that’s what makes the customer feel safe, but the escalations model is what’s really going to drive the vendor to perform to SLAs.

    Reply

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