MANAGING IT SERVICE DELIVERY

Rifki Shihab Corporate Information Strategy and Management

The Old Days..

Filled with proprietary technologies

Until the

1990s your own

Develop Not

infrastructures

Now

interoperate real well Tendency to lock-in

Shareinfrastructures Simplified

standardizations Incremental Investment

Remember Business Models

It delivered by Service Chains

Towards virtual

integration

Blend in providers
Even at

distant locations

Not ready for software?

Outsource the

logical Space or facility

Benefits of incremental Outsourcing

Shortage of skilled labor Faster time to market

Think e

commerce scale.. And its relation to redundancy

24X7 operations
Economies of

Better cash flow Cost reduction

Think maintenance

Global touch

More on Incremental Outsourcing

Outsourcing -> to specialized firms Advantages of specialized services:

Focus on

their best@ of Scale and Scope Interoperability, and Security is almost

Economies Reliability,

a given!

Managing Risks Through Incremental Know WHAT to outsource! Outsourcing

Unique, Core?
Unless you

cant do it yourself

Most services have no competitive Commodity like advantage Prioritize on some values.. Not features.

Why is Incremental Outsourcing Favorable? Economic Stakes

Potential Mis-Management Allows for experimentation Trial error with less damage! BUT:
Each increment

must tie-in Big picture thinking

Incremental Outsourcing Examples

Decide so YOU control the risks Usually back office businesses

Reduce downtime

up to 87%

Choose:
Real estate,

Look at Hosting Example as increments of outsourceable IT

networks, Platform,Application, or Business.

Managing Relationships with Service Providers Most Critical Step is

Start with:
RFP

Then.. Ask Then..

around

Scoring mechanism

Typical RFP is

Descriptive What is its business Financial Is it healthy Meeting SLA Understand what I want Risk mitigation Availability and Security Service Guarantees Penalties? Pricing NOT a priority! If its too one sided, its a bad deal for both

Relationship Management

On going process Use SLA as measurement tool Manage the WEB of SLAs What to do upon failures? Where are your data? Avoid entanglements --Slow.. Small steps.. But.. ONGOING is incremental outsourcing