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A [[service level agreement]] (“fondly”<ref>Few people who have ever been party to one look upon an SLA with any kind of fondness</ref> known as an '''[[SLA]]''' — that is an ''ess-ell-aye'', not a “slah”) defines the level of service you expect from a vendor, laying out the [[metric]]s by which the service is measured, and your remedies and [[Penalty clause|penalties]] should agreed-on service levels not be achieved. | A [[service level agreement]] (“fondly”<ref>Few people who have ever been party to one look upon an SLA with any kind of fondness</ref> known as an '''[[SLA]]''' — that is an ''[[ess-ell-aye]]'', not a “slah”) defines the level of service you expect from a [[vendor]], laying out the [[metric]]s by which the service is measured, and your remedies and [[Penalty clause|penalties]] should agreed-on service levels not be achieved. | ||
''It is a critical component of any vendor contract.'' | ''It is a critical component of any [[vendor]] contract.'' | ||
Thus, in a stroke, the [[SLA]] demonstrates the folly of [[outsourcing]]: an [[Survivor|internal resource]] may be expensive, truculent, workshy and in need of holidays and a pension, but (at least in theory) to get a decent job out of her you don’t need an [[SLA]]<ref>This won’t stop [[middle management]] trying to impose one, of course.</ref>: the better the job {{sex|she}} does, the more the bonus she’ll get!<ref>IN THEORY. OK folks I know it doesn’t really work like that but the collective is often gripped with a madness a crowdish delusion that it is somehow different.</ref> | Thus, in a stroke, the [[SLA]] demonstrates the folly of [[outsourcing]]: an [[Survivor|internal resource]] may be expensive, truculent, workshy and in need of holidays and a pension, but (at least in theory) to get a decent job out of her you don’t need an [[SLA]]<ref>This won’t stop [[middle management]] trying to impose one, of course.</ref>: the better the job {{sex|she}} does, the more the bonus she’ll get!<ref>IN THEORY. OK, folks: I ''know'' it doesn’t really work like this (GOD KNOWS I know that) but the collective is often gripped with a madness a crowdish delusion that it is somehow different.</ref> | ||
But once you have outsourced the role to a free agent patrolling the free market, that calculus, however delusional it may be, changes. Now your starting assumption | But once you have outsourced the role to a free agent patrolling the free market, that calculus, however delusional it may be, changes. | ||
Now, unless you are a fool, your starting assumption must be that ''your agent will do as little as he humanly can to comply with the most pedantically literal possible reading of your agreement''. To do a stroke more is economically irrational (so sayeth the Smiths, Friedmen and Hayeks of economic history). Your [[service provider]] has agreed a fixed fee for its services, it is his sole and constant interest to expend as few resources as are humanly possible to earn that fee. | |||
The difference between the fee and those resources is his profit margin. A free agent is exclusively focused on what it does ''not'' have to do. This, and only this, is what he turns up for. | The difference between the fee and those resources is his profit margin. A free agent is exclusively focused on what it does ''not'' have to do. This, and only this, is what he turns up for. | ||
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{{Outsourcing}} | {{Outsourcing}} | ||
*[[Insurance]] | |||
{{ref}} | {{ref}} |