IT Policies

SLA Design and Service Provisioning for Outsourced Services

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Executive Summary

In this work, a business-driven approach to designing Service Level Agreements in an e-commerce environment is proposed. In contrast to conventional SLA design approaches, the one proposed better captures the relationship between service provider and service client by considering the negative business impact (business loss) originated from IT infrastructure failures and performance degradation and introduces such knowledge into the SLA itself. A complete example scenario shows the value of the proposed approach. A main conclusion is that the SLA established using the business-driven perspective is superior to the one based on a conventional approach since both service provider and client can simultaneously obtain higher profit.

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