SLA Based

IT outsourcing companies in recent years are increasingly asked by customers to charge for their services based on “output”. This model though is common in some industries is unusual for an industry like software, where well planned estimations often go haywire. Collecting metrics and sharing them with customers has been a standard practice followed in the software industry for many years. However, setting, tracking and managing Service Level Agreements (SLAs) contractually is something service providers are still struggling to come to terms with.

The continuous push by the customers towards shared responsibilities has ensured gradual adoption of SLA by IT outsourcing companies. Today, the SLA based payment model has extended to all spheres of software services including Software Testing, Infrastructure Support etc.

Read more: managed services SLA

The SLA based testing services provides the customer consistent quality of service which is monitored regularly by the SLA approach. It also elicits increased accountability on the part of the vendor.  In due course, the vendor also develops deep capabilities that differentiate itself in the increasingly commoditized testing services market.

However, both parties need to be aware of a few things before taking the plunge into SLA based testing services. Listed below are the major areas that need to be actively considered by both the Vendor and Testing Service provider.
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