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Outsourcing and Offshoring Consulting Business Guide

2Documented Cases
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All 2 Documented Cases

SLA Breach Penalties and Contractual Non-Compliance

Service credits up to contract value

Outsourcing providers in consulting face recurring penalties or service credits for failing SLA metrics such as response time, availability, and defect rates. Inadequate tracking and reporting leads to escalation, financial liabilities, or contract termination. This is systemic in BPO and IT outsourcing without real-time monitoring.

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Unclaimed SLA Penalty Credits in Outsourcing Contracts

$8-12% of contract spend

In outsourcing and offshoring consulting, failures in SLA tracking result in unclaimed service credits or penalties when vendors miss metrics like availability or response times. Clients lose revenue due to undetected breaches, leading to forgone financial remedies. Systemic issues arise from poor monitoring, causing ongoing leakage until automated tools are implemented.

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