What metrics can you use to evaluate a managed services contract?

1 Availability and uptime

One of the main benefits of a managed services contract is that it guarantees a certain level of availability and uptime for your IT systems and applications. This means that the service provider is responsible for ensuring that your IT infrastructure is always operational, reliable, and secure. You should measure the availability and uptime of your services using a service level agreement (SLA) that specifies the minimum percentage of time that the services should be available, the maximum duration and frequency of downtime, and the penalties or remedies for breaching the SLA. You should also track the actual performance of the services against the SLA using tools such as uptime monitors, dashboards, and reports.

2 Quality and satisfaction

Another important metric to evaluate a managed services contract is the quality and satisfaction of the services delivered. This means that the service provider is not only meeting the technical requirements of the contract, but also providing a positive customer experience and value-added services. You should measure the quality and satisfaction of your services using various methods such as surveys, feedback forms, reviews, testimonials, and referrals. You should also assess the quality and satisfaction of the service provider's communication, responsiveness, professionalism, and expertise.

3 Cost and efficiency

A third metric to evaluate a managed services contract is the cost and efficiency of the services delivered. This means that the service provider is delivering the services within the agreed budget and timeframe, and optimizing the use of resources and technology. You should measure the cost and efficiency of your services using indicators such as the total cost of ownership (TCO), the return on investment (ROI), the cost per unit of service, and the cost savings or reductions. You should also compare the cost and efficiency of your services with the market rates and benchmarks, and identify any areas of improvement or optimization.

4 Innovation and growth

A fourth metric to evaluate a managed services contract is the innovation and growth of the services delivered. This means that the service provider is not only maintaining the current state of your IT systems and applications, but also enhancing, upgrading, and expanding them to meet your changing needs and goals. You should measure the innovation and growth of your services using criteria such as the number and quality of new features, functions, and solutions, the alignment with your strategic objectives and vision, the adoption and usage rates, and the impact on your competitive advantage and market share.

5 Security and compliance

A fifth metric to evaluate a managed services contract is the security and compliance of the services delivered. This means that the service provider is protecting your IT systems and applications from cyberattacks, data breaches, and other threats, and complying with the relevant laws, regulations, and standards. You should measure the security and compliance of your services using metrics such as the number and severity of incidents, the response and recovery time, the security audits and assessments, the security policies and procedures, and the security certifications and accreditations.

6 Flexibility and scalability

A sixth metric to evaluate a managed services contract is the flexibility and scalability of the services delivered. This means that the service provider is able to adapt and adjust the services to your changing needs and demands, and provide you with the option to scale up or down the services as required. You should measure the flexibility and scalability of your services using factors such as the contract duration and termination, the service level changes and amendments, the service delivery models and options, and the capacity and performance adjustments.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?