Qualifying and Quantifying IT Services Added Values in Outsourcing Assignments—Service Value Agreement 329
organizations and this study is a valuable reference for
practitioners in this field.
These advantages are achieved by eleven identified
values along with eleven developed service value metrics
which are categorized in three cornerstones: service per-
formance, process efficiency, and capability.
An SVA is “collectively exhaustive” and “mutually ex-
clusive” meaning that, on one hand, it includes the values
and measurement indexes which are under the control of
management and, on the other hand, no two indexes
overlap one another. Nevertheless, the current SVA is
not a stand-alone solu tion th at can be implemented solely.
As of today this value repository complements rather
than competes with other greatly used practices such as
SLA. However, it may in the future be possible to move
from SLA to SVA by perfecting the SVA and make it
mor e comprehens ive.
The added values along with the metrics discovered in
this study got the senior managers’ attention in Tieto
quickly and an SVA is viewed a competitive advantage
in the market. A newly received Request for Proposal
(RFP) asking for added value proposition from a multi-
national organization with large amounts of applications
is proof on this. As a further research, the authors are
evaluating the outcomes of this study by implementing
different aspects of an SVA in a live RFP.
Moreover, as highlighted in Section 3.2, intangibles,
which are ignor ed by SLA, plays inventible role in value
delivering to customers. Intangible values are discussed
and their importance is confirmed by various studies (e.g.
); however no clear framework and metric has been
developed. Hence, there exists a need for further research
in this area. Since less complexity and risks are dedicated
to operational level in customer-provider relationship,
one recommendation is to examine intangibles from op-
erational point of view and expand the results to the stra-
The authors wish to hereby thank Pernilla Wikman, the
Vice President of Application Management, Tieto, Swe-
den, for her continuous support.
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