Services are typically specified through statements of work (SOW) that outline
specific services a contractor is expected to perform and the time schedule
required. Unless the buying organization conveys the full scope of work, there
is no guarantee that it will be done. This course explores the proper use and
development of SOWs in buying services.
Services are rendered via the application of labor, often coupled with
intellectual content, and some method of delivery. Unlike products, services
are often performance-based rather than physical-based. This presents the
challenge of defining intangibles in finite, measurable terms. In addition to
appropriate supplier qualification and management strategies, successful
service procurements are highly dependent upon the language of the agreement
itself. Many fail to consider the uniqueness of service procurements and
underestimate the importance of the actual words in service agreements.
This course explores the proper use and development of SOWs in buying
services. It points out the differences between specifying and buying services
versus products and delves into the influence the category or type of service
has on the SOW.
After completing this course, you will be able to:
Articulate the differences between specifying and buying services versus products.
Identify the category of service being acquired.
Develop a SOW for the acquisition of a service.
Determine the adjustments necessary to the SOW for each process in the acquisition chain.