SMBs fast aligning towards SLAs

NEW YORK, USA: Dimension Data, a $3.8 billion leading IT solutions and services provider, today announced the results of a 14-country survey that polled 370 CIOs to determine whether or not their service level agreements (SLAs) are aligned with their businesses and generating value. The survey revealed that small- to medium-sized businesses (SMBs) are outpacing their larger counterparts in terms of their progress in aligning SLAs to business needs and ensuring the right metrics are in place.

Results from the survey indicated that the size of an organization is one of the primary considerations in SLA design and selection. The tipping point appears to be around the 1,000-employee mark. Results showed that as the number of employees climbs, so too does the level of dissatisfaction with SLAs' alignment to business process needs, peaking at 22 percent in organizations of more than 10,000 employees. Larger organizations therefore need to apply a higher level of focus when they define their SLAs, manage expectations and accept that the process will take time.

The survey also revealed that the majority of organizations surveyed, regardless of size, are generally satisfied with the coverage and level of alignment of their SLAs. When asked how well their existing SLAs are aligned to business processes, more than a third of respondents (37 percent) reported that they are entirely satisfied with the level of alignment and the coverage provided by their SLAs. A further 33 percent reported that they were comfortable that their SLAs are defined around relevant metrics, although they still experienced some challenges around coverage. Overall, the results are encouraging and support the notion that IT organizations are on track to crafting SLAs that meet the needs of their business stakeholders.

"SLAs continue to be an important business driver and one of the primary indicators used to measure performance," said Wesley Johnston, executive vice president and COO, Dimension Data Americas. "That's why proper planning and communication between business and IT are so important in establishing service level measures and, without them, too many organizations will make flawed associations between their business outcomes and IT performance. Our survey shows us that CIOs are making great strides in strengthening their SLAs by working more closely with both their business stakeholders and service providers and are also leveraging the benefits of IT Service Management best practice frameworks."

The results of the Dimension Data survey also revealed that a significant percentage of organizations work closely with their service providers to determine SLA metrics (26 percent). This is an encouraging statistic because the contracts governing outsourcing engagements should be flexible to meet changing business needs. A collaborative approach to SLA development between client and service provider can go a long way to achieving effective SLAs.