7 Replies · Latest reply on Oct 24, 2017 12:46 PM by Rajesh Mushkhe

    what is Underpinning contract ?

      what is Underpinning contract in SLA

        • Re: what is Underpinning contract ?
          Jaspal singh

          Hi Bhushan,

           

          In general terms its contract between service provider & third part organization.

           

          You can refer links

          https://wiki.en.it-processmaps.com/index.php/Checklist_Underpinning_Contract_(UC)

          ITIL Definition: Underpinning Contract (v2, v3)

          Thanks,
          Jaspal Singh

          Hit Like or Correct on the impact of response.

          • Re: what is Underpinning contract ?
            Gaurav Choudhury

            Hi Bhushan,

             

            An Underpinning Contract (UC) is a contract that you have with your supplier (vendor), i.e., external parties who need to achieve service targets for you, but for them, you are a customer. The UC must also support SLA parameters and you use the UC to ensure that you get what is expected for the money you pay to the external company.

             

            Setting up an SLA/OLA/underpinning contract

             

            Open any standard web browser.

            Type the Service-Now instance web address (https://{instance_name}.service-now.com) provided by your company in the address bar. Now, enter your credentials in respective fields.

            Type service management in the search box and Service-Now will search the Service Level Management application for you. Click on the SLA Definitions module, as shown here:How to do it...

            Service-Now management

            You will now be able to see the following screen, where you can see all SLA records. Click on the New button to create new SLA:  How to do it...

            Create new SLA record

            It is important to note that an SLA has three conditions (state, pause and stop) and if conditions are not set properly then the SLA may be cancelled automatically. Now configure the SLA definition as follows: Click on Submit.

            • Name: AD Server Issue
            • Type : SLA or OLA or UC
            • Table : Incident[incident]
            • Workflow: Default SLA workflow (auto attached)

              How to do it...

              SLA configuration part 1
            • Duration type : User specified duration
            • Duration: 4 Hours
            • Schedule : 8-5 weekdaysHow to do it...

              SLA configuration part 2

            • Start condition: Define the start condition of the SLA, such as timer start condition, as on a new state or on a ticket description. You may choose the state, category, subcategory, or business services to kick off
            • Category: Software
            • Subcategory: Business Software
            • Business Services: Active DirectoryHow to do it...

              SLA start condition

            • Pause condition: Define the pause condition of the SLA such as timer pause conditions as when you want any details from end users  you can make the pause condition when the state is awaiting user info. Awaiting Problem and so on.How to do it...

              SLA pause condition

            • State: Pick Awaiting Problem, Awaiting User Info, or Awaiting Vendor
            • Stop condition: Finally, you need to configure when the timer should end, such as when the task state is resolved or closed. Note that out of the box, Service-Now has a business rule that closes resolved incidents after 5 daysHow to do it...

              SLA stop condition

            As an output, when these conditions are matched the SLA AD Server Issues will start execution.

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            -----------------------------------------
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            • Re: what is Underpinning contract ?
              Anil kumar

              Hi Bhushan,

               

              Underpinning Contract is an agreement between the service provider and a third party. It's contract not agreement. It's defines targets and responsibilities that are required to meet agreed Service Level Targets in an SLA.

               

              Please refer the below link

               

              The difference between an underpinning contract and a SLA | The IT Skeptic

              • Re: what is Underpinning contract ?
                Rajesh Mushkhe

                Hello Bushan,

                 

                 

                The easiest way to understand it is:

                • SLA for end users
                • OLA inside (IT) department
                • UC with external people (vendors)

                 

                As a side note, if you want to get this right quickly out of the gate, you might want to read a bit on the difference between SLAs, OLAs, and Underpinning Contracts (UCs). Functionally in ServiceNow, they all work identically, and the only difference is how you treat them administratively. Technically in a nutshell, though:

                • If you're measuring time that is specified in a formal contract to a customer or legal entity, set the type to SLA.
                • If you're measuring time that represents an internal commitment between your team and another internal team or your internal IT organization, set the type to OLA.
                • If you're measuring time that represents a third party supplier's commitment to you, set the type to Underpinning contract.

                 

                A great analogy I use is the "McDonald's drive-through" analogy. When you pull up to a drive-through at McDonald's, an SLA represents the restaurant's commitment to get you your food and is measured in the time from when you place your order until the time they hand you your bag of food. An OLA represents the internal time it takes to complete various parts of your order, such as the time it takes the burger chef to make your burger, the fry cook to cook your fries, the drink person to prepare your beverage, etc. An Underpinning Contract represents the time it would take, for example, for the credit card processor to process and approve the financial transaction initiated by swiping the customer's credit card.

                 

                The reason I mention all of this is because I frequently see companies screw this up. You might want to set a pause condition for an SLA to something like Pending Vendor while you're waiting on some third party support entity to respond to you opening a ticket. If you're working off an OLA or Underpinning Contract, that's probably a good idea. But if you're working on an SLA, you probably shouldn't do that since it's uncommon to have in your external contracts for it to be your customer's responsibility to wait on your third party provider to fix your issue. If you have a Pending Customer/Client status, however, you might want to pause the clock on that since it's normal for you not to have to suffe

                 

                Please Refer :

                 

                http://advisera.com/20000academy/knowledgebase/slas-olas-ucs-itil-iso-20000/

                2 of 2 people found this helpful

                Thank you,
                Rajesh Mushke.
                Developer Expert 1

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                Please Hit ✅Correct, ⭐️Helpful, or ❣️Like depending on the impact of the response

                • Re: what is Underpinning contract ?
                  Rajesh Mushkhe

                  simple Example:

                   

                  An SLA is a contract between the IT Organization and the End User

                  An OLA is a contract between IT departments

                  An UC is a contract between the IT organization and suppliers.

                   

                   

                   

                  Jenis-jenis kontrak dalam Service Level Management.jpg

                   

                   

                  Please Refer :

                  SLA vs OLA

                  Best Practice

                  What is difference between SLA & OLA

                  1 of 1 people found this helpful

                  Thank you,
                  Rajesh Mushke.
                  Developer Expert 1

                  Please mark your question as answered if it resolves your issue.

                  Please Hit ✅Correct, ⭐️Helpful, or ❣️Like depending on the impact of the response

                  • Re: what is Underpinning contract ?
                    Rajesh Mushkhe

                    Hello Bhushan Maindarkar,

                     

                    I hope you are satisfied with the my Answer.

                     

                    So,Would you mind please close this thread.

                     

                    Let me know if that answered your question. If so, please mark my response as correct so that others with the same question in the future can find it quickly and that it gets removed from the Unanswered list. Please Visit .How To Mark Answers Correct From Community Inbox

                     

                     

                    Thank you,
                    Rajesh Mushke.
                    Developer Expert 1

                    Please mark your question as answered if it resolves your issue.

                    Please Hit ✅Correct, ⭐️Helpful, or ❣️Like depending on the impact of the response

                    • Re: what is Underpinning contract ?
                      Rajesh Mushkhe

                      Hello Bhushan Maindarkar,

                       

                      I hope you are satisfied with the my Answer.

                       

                      Please close this thread.

                       

                      Let me know if that answered your question. If so, please mark my response as correct so that others with the same question in the future can find it quickly and that it gets removed from the Unanswered list. Please Visit .How To Mark Answers Correct From Community Inbox

                      Thank you,
                      Rajesh Mushke.
                      Developer Expert 1

                      Please mark your question as answered if it resolves your issue.

                      Please Hit ✅Correct, ⭐️Helpful, or ❣️Like depending on the impact of the response