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Q. Statement of Work(SOW)
Anonymous
posted 5 years ago
I heard that in IT companies for Service Agreement SOW is one of the most important documents. Please let me know why it is so critical?
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A. Dear Student,
The Statement of Work (SOW) is a formal document which describes the scope of the work to do in the project. This is an official document which states the requirements, acceptable deliverable which is mutually agreed upon by all parties. The most important part is, this document is formally signed by designated representative of both the sides.
The Statement of Work includes –
Scope of the work
The deliverable and their delivery dates
Agreed acceptance criteria
Project cost and payment schedules
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A. Hi There,
You have rightly pointed out that SOW is a critical document and important part of the IT Service Agreement. In Agreement we capture the high level and broad based terms and conditions of the engagements like Contract Period, Signatories, Payment, Termination, Excuse clauses etc. but the real and threadbare scope of the work is captured in the SOW. The SOW is the document which entails what exactly will be delivered by whom to whom at what time and where. An It professional will most of the time refer to SOW than to the Agreement for proper delivery of services.
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