Insourcing, outsourcing and service level management

2017-06-07T02:07:35Z (GMT) by Beaumont, Nicholas
This paper describes Service Level Management (SLM) and Service Level Agreements (SLA) noting that there is little relevant academic literature and that these concepts originated in the context of computer services (e.g. banking at ATMs) distributed to users through networks. It recommends that the SLM and SLA concepts be used to formalise any kind of insourcing or outsourcing arrangement. Insourcing denotes a department obtaining goods or services from another department of the same organisation. In Australia at least, outsourcing is becoming more common; perhaps especially because technical advances allow data to be effortlessly, instantly and cheaply transferred amongst organisations. As part of funded research on outsourcing in Australia, we will collect data on the use of SLM and SLAs, delineate their incidence and test simple research questions such as "Do SLAs contribute to participants' perceptions of the success of outsourcing arrangements?

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