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Technology Insights Series: Drafting Effective Service Level Agreements

22 July 2020

Our technology insights series takes a deep dive into the key legal issues affecting digital transformation and large scale technology projects and analyses the trends affecting businesses operating in the global digital economy.

The first issue looks at how innovative businesses can draft effective service level agreements and KPIs (SLAs).

An SLA is a critical component of any long term IT contract and a key contractual tool to assess the success of technology projects.

From the customer’s perspective, an SLA articulates the parties’ expectations about service delivery, aiming to make the supplier accountable and encourage good performance. A poorly drafted SLA can result in a lack of clarity about how to deal with sub-standard services, outages and other events. This can ultimately cause the customer to suffer financial and reputational damage.

SLAs in digital transformation projects need an adaptable approach that leverages pro-active and reactive service levels, end-to-end service analytics, and scalable, integrated solutions. We are increasingly seeing parties introduce concepts like service desk automation, early warning mechanisms, balanced score cards and user experience surveys to complement traditional service performance measurement in this area. Truly effective SLAs require careful planning, suitable drafting and significant commitment from all stakeholders if they are to deliver optimum value.                                                                                     

On the launch of our technology insights series, Mark Adair, partner in our Technology, Sourcing & Innovation team, commented: “Many businesses are undertaking digital transformation projects, integrating new digital technology into their business environment. External factors like the arrival of disruptive service providers, Brexit and Covid-19 have accelerated this trend. As technology becomes more complex, progressive organisations need pragmatic advice to help realise their digital transformation ambitions. We hope that our technology insight series will lift the lid on some of the hidden secrets to drafting and negotiating contracts for these important technology projects.”

Our Technology, Sourcing & Innovation lawyers are the ‘go to’ experts for multinational companies developing, using, or supplying technology, which is reflective of our position as one of Ireland’s leading tech law firms. Whether digital transformation projects, outsourcing of critical operations or selling products and services online, we give the smart advice our clients need, solving the issues they face today and anticipating the challenges of tomorrow.

You can read the first issue of our Technology Insights: Drafting Effective Service Levels here.


The content of this article is provided for information purposes only and does not constitute legal or other advice.

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