How do you balance SLA quality and cost when selecting and managing global vendors?

1 Assess your needs

Before you start looking for global vendors, you need to have a clear idea of what you want from them. What are your project goals, scope, timeline, and quality standards? What are the risks and dependencies involved? How will you measure and monitor the vendor's performance? How will you communicate and collaborate with them? By defining your needs and expectations, you can narrow down your vendor options and compare them more effectively.

2 Compare vendors

Once you have a list of potential vendors, you need to compare them based on several criteria, such as their experience, reputation, capabilities, availability, and pricing. You also need to evaluate their SLA proposals and see how they align with your needs. Look for vendors that offer realistic and flexible SLAs that cover the key aspects of the service, such as scope, quality, availability, reliability, responsiveness, and security. Avoid vendors that offer vague or unrealistic SLAs that may lead to disputes or dissatisfaction.

3 Negotiate SLAs

When selecting a vendor, it is important to negotiate the SLA terms to ensure both parties are on the same page and the SLA reflects mutual expectations and interests. Aim for a win-win situation where you get the best value for your money and the vendor receives fair compensation for their service. Consider prioritizing the most important SLAs and being flexible on the less critical ones. Additionally, use clear and specific language to avoid ambiguity or confusion, include incentives and penalties for meeting or missing SLAs, define how SLAs will be measured and reported, establish a dispute resolution process and an escalation mechanism, and review and update SLAs regularly to account for changing needs or circumstances.