Service management - Issues with using Analytical model

The service provider often finds it difficult to agree to a SLA right-away due to several constraints:

1. Lack of clear baseline/benchmark for the service prior to outsourcing due to several factors:
a. Absence of management of service through metrics
b. Absence of structure, processes and organizations
c. Absence of system and measurements
d. Absence of right data in the systems (even if it is available)
2. High client expectations on improvement targets during outsourcing. This results in defining the target metrics at a level which the existing service organizations has failed to achieve

If clients’ services are matured and above constraints are not a bottleneck, then the challenge shifts to the following:

1. Characterization of demand (read as service requests)
2. Characterization of service (read as resolved service requests)
3. Planning the right capacity for providing service
4. Defining the optimal service level objectives for the lines of business and hence the service providers
5. Designing the right capacity-demand model to serve the clients
6. Executing and sustaining the performance of the organization to the defined service level objective, and
7. Continuous improvement on services to the clients and their lines of business

Do you agree? What other problems have you faced?