You may assume your BPO contract guarantees results, but does it?
Businesses often sign outsourcing contracts believing service level agreements—SLAs—will provide clear standards, guaranteed performance, and accountability. However, that is not always the case.
A weak SLA can result in poor response times, missed deadlines, and low-quality work, with little to no consequences for failure. Meanwhile, delays, lost revenue, and customer dissatisfaction can impact your business while the contract continues to benefit the provider.
Many companies do not recognize the risks until it is too late. They expect SLAs to ensure quality, but the reality is different. Some agreements lack clarity, contain loopholes that favor the provider, or include penalties too weak to drive real improvement. In some cases, SLAs measure performance indicators that do not align with business priorities.
Consider this: If an outsourced team answers 90% of calls within 30 seconds but customer satisfaction remains low, does that SLA truly help? If reports are delivered on time but contain errors, what is their real value? A well-structured SLA should go beyond tracking numbers to drive meaningful performance and accountability.
To ensure your SLAs work in your favor, it is essential to ask the right questions before signing a contract. What actions are taken if service quality declines? Are penalties strong enough to drive necessary improvements? Do performance metrics reflect your business goals, or are they designed primarily for the provider’s convenience?
Many businesses make the mistake of relying on the provider for guidance. However, BPO companies structure contracts to safeguard their interests first. Without proactive oversight, your SLAs may not offer the protection you expect.
A well-defined SLA should also include escalation procedures. If performance dips below expectations, there must be a clear process for resolving issues. Regular performance reviews and structured improvement plans help prevent long-term damage. Contracts should also outline exit strategies in case service quality remains consistently poor.
It is also important to define service exclusions. Some SLAs may not cover critical aspects of service that your business relies on, leaving you vulnerable. Identifying gaps before signing ensures there are no unexpected surprises later.
Outsourcing Fit helps you take control of outsourcing. As a BPO broker, we connect businesses with the right providers while ensuring SLAs are clear, enforceable, and built for success. We help structure agreements that hold providers accountable, ensuring quality service and real results.
Don’t leave your business exposed to risk. Let’s make outsourcing work for you.
