often revisited and modified by parties as the partnership grows and changes over time. These are the basic components of an effective SLA:Introduction and purpose section of the SLA including the: who, what, when, where, why and how of the engagementScope of work section that outlines the services to be delivered.Performance, tracking and reporting section that maps out a detailed method of keeping services top-notchProblem management section that discusses contingency plans and uniform definitions of what constitutes a problem along with how problems will be handledFees and expenses section that chalks out the pricing guidelinesClient duties and responsibilities section that conveys the customers areas and methods of involvementWhat are the methods of outsourcing? Companies that outsource follow one or more of these methods of outsourcing:Offshoring outsourcing business processes to locations around the globe to reduce labor, tax and operational costsOnshoring outsourcing business processes to a BPO firm that is within the same country. While the company gains benefits that come with intimate knowledge of in-country logistics, this method can be more expensive than other methods of outsourcingRightshoring - outsourcing business processes to locations that provide the best combination of cost and efficiency. It refers to maintaining a balance between processes that can remain domestic and those that can be outsourced overseasNearshoring outsourcing business processes to a facility that is located at a nearby country in order to gain benefits such as reduced travel costs, maintaining communication methods and expenses while lowering other operational costsWhat are the models of outsourcing available?Various models of outsourcing exist in todays global delivery network. The basic models that dominate the market are: Offshore Development Center refers to a model of outsourcing also known as third-party offshoring that essentially creates and supports a dedicated facility under contract to the customer. It suits customers seeking to enter the market fast and with minimal start-up costs and want to use the partners resources to scale up or down the business as the need arises.Joint Venture refers to a model of outsourcing wherein an in-country and foreign organization join up to share responsibility in terms of management, as well as risks and rewards that correspond to their investments.Build Operate Transfer refers to a model of outsourcing wherein the customer works contractually with an in-country service provider to build, staff and handle a development or processing center. Once the center is fully operational, ownership is transferred to the customer.Captive Center refers to a model of outsourcing that is basically an extension of the customers facilities in an offshore location. Customers have complete ownership and control over total operations offshore.What is transformation in outsourcing terms? Transformation in the BPO world is about sculpting business processes that would facilitate operational excellence, save costs, enhance the brand image and create continuous value for your business. It goes beyond shaking out inefficiencies and sticking to SLAs. Transformation is a collaborative approach where your organization takes active part in the process right from the beginning. What certifications should a BPO service provider have? Depending on the nature of your business, you should partner with an outsourcer who