Premium
Design of Contracts and Workflows for Knowledge Intensive IT Service Environments
Author(s) -
Dong Su,
Johar Monica S.,
Kumar Ram L.
Publication year - 2019
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/deci.12330
Subject(s) - workflow , service level objective , service provider , service (business) , service design , workforce , computer science , service delivery framework , business , process management , point (geometry) , service level , knowledge management , marketing , database , economics , geometry , mathematics , economic growth
Organizations are increasingly adopting environments in which IT is delivered as a service. The relationship between service provider and the customer is managed through contracts or Service Level Agreements (SLAs). This article examines underresearched relationships between contract structure and performance from the point of view of the IT service provider. It develops two mathematical programming models to better understand relationships between workforce characteristics, workflow, contract structure, and the business environment under Managed Service and Hybrid demand conditions. We illustrate how workforce selection, workflow, and contract design decisions can be effectively used to optimize performance. Managerial implications for contracting and operating strategies are discussed.