Page 573 - Handbook of Modern Telecommunications

4-104 CRC Handbook of Modern Telecommunications, Second Edition

Master
Contract Management
Contract

Service Operating Service Order Service Order Service Order
Catalog Principles of Work 1 of Work 2 of Work n

Service Level Service Level Service Level Performance
Agreement 1 Agreement 2 Agreement n Management

Metrics Metrics
Definition Dashboards

FIGu RE 4.5.16 Documents composing a sourcing contract.

the simpler it is to find important terms and information, the easier it is to use an automated tool.
Ideally, a contract will consist of several documents to improve understanding and ease administration.
Figure 4.5.16 illustrates a typical (and recommended) contract structure, the documents involved, and
the relationships between them. These include the following items.

• Master contract. The master contract is a legal document that specifies the rules by which the
client and service provider will operate. Normally, one master contract governs the relationship,
containing financial terms and standard legal protections, and covering such topics as issue reso-
lution, work changes, and exit clauses—all from a legal perspective. The contract refrains from
specifying the details of the work to be sourced but refers to attachments (described below)—
structure that makes it easier to change service-related work without necessarily modifying the
master contract.
• SOWs (Statements of Work). SOWs form the core of any sourcing arrangement and define the
scope of the service to be provided or the work to be performed. A SOW specifies the assets and/
or functions that the service provider will support, the types of work that will be performed, the
inputs required, deliverables created, and each party’s roles in the arrangement. Multiple SOWs
tend to be easier to administer and adjust than one mammoth SOW, with the actual number
depending on how many discrete projects, functions, or efforts will be transferred to the service
provider. Depending on its construction, a SOW may relate directly to a service contained in
the service catalogue. For example, a SOW may cover desktop PC maintenance services, which
appears as an entry in the catalogue.
• Sl As. SLAs define the parameters by which the work identified in the SOWs will be performed
and judged. The SLA defines performance criteria such as the volume of work that should be
performed in a given time frame, system availability, and acceptable response times for requests,
quality requirements, and efficiency measures. These commitments may run two ways, describ-
ing both service provider and client obligations. SLA performance criteria are described using
metrics. Generally, a separate metric is used for each characteristic measured. For example, when
outsourcing a help desk function, work volume may be specified by the number of calls handled
per month, and responsiveness may be defined as average time to call back. SLAs are the measures
that appear in dashboards to give managers a quick view of vendor performance.