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Service level agreement: Difference between revisions
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Now, unless you are a fool, your starting assumption must be that ''a paid 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. | Now, unless you are a fool, your starting assumption must be that ''a paid 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. | ||
This is no more than an articulation of the [[agency problem]]. Yes, it is true: an [[employee]] is also an agent, but an ''outsourced contractor'' is an agent thrice removed from the best interests of the company seeking the service. | |||
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]] | *[[Insurance]] | ||
*[[Agency problem]] | |||
{{ref}} | {{ref}} | ||