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Ronak

Service Level Agreements (SLAs) in Testing Industry

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by , 12-14-2014 at 04:54 PM (440 Views)
With changing delivery models, there also has been an immense change in SLAs and metrics over

the past few years.



Initially, most metrics focused on cost reductions and savings, that was achieved through test automation, labour arbitrage and reducing rework through increasing defect discovery thus improving the testing economics.



The next phase saw metrics focusing on service quality, in addition to the cost metrics. This involved identifying defects early in the UAT process and providing better quality services across the value chain thereby reducing the cost. The increasing maturity of Indian service providers allowed them to provide consistently high quality service delivery, and improving the user defined standards on a regular basis.



However, in the past few years, the industry has seen increased shift to business outcome-based metrics, where the service providers are expected to assure a certain impact/consequence. In an outcome-based pricing model, vendors have started to offer outcome-based pricing models to clients which guarantee pricing levels when pre-decided specific criteria regarding service performance are met. These types of models are usually offered to clients with whom vendors have had long standing relationships and where the service levels had reached a stage where the outcome criteria can clearly be judged. Metrics based on outcome can include the revenue impact on clients, the impact on end customers of clients, lower test life cycle time and faster time-to-market.


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Ronak Shah
Practice Head (Software Testing / QA)
CIGNEX Datamatics

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