In multisourced IT operating models, where technology servic- es are provided by myriad teams or organizations, ensuring seam- less delivery presents a challenge. One way to address this challenge is through contracting for a discrete Service Integration and Management (SIAM) function. An effective SIAM function enables organizations to take advantage oftheflexibilityandinnovationof multisourcing and standard services while delivering integrated services to the business. This ISG white paper discusses the chal- lenges and key success factors related to service integration and governance functions within multi-sourced IT operating models.
The need for service integration
Multisourced IT operating models are increasingly common and offer many potential benefits. Single-sourced models provide little flexibility in addressing rapidly changing business objectives. Multisourcing allows a client to move from “indispensible” single providers to take advantage of competitive provider behaviors that drive down costs and incentivize deployment of innovative industry developments such as cloud services. In multisource arrangements clients can select a “best of breed” provider for each of their bundles of IT services.
Introducing numerous providers into an operating model also in- troduces challenges, as individual teams (both in-house and out- sourced) can act autonomously and lack coordination across the enterprise.
The resulting fragmentation of service delivery complicates the task of integration and governance, which is essential to delivering effective services. Issues can fall into the gaps between providers, leading to finger-pointing behavior and poor overall performance. Service restoration times can suffer while providers determine which component service is down and who is responsible. During problem analysis, service providers can focus on attributing blame rather than identifying the root cause. Lacking incentives to collaborate, service providers can become focused on competition to the detriment of providing services to the client.
Governance must address both the supply and demand of IT ser- vices. Highly disparate IT requirements create complex and heterogeneous IT estates with poor value for money. Meanwhile CIOs today face increasing pressure to demonstrate cost efficiency. Cost savings realized through standardization of IT estates are therefore at risk if demand for nonstandard services is not man- aged. That said; legitimate business requirements for specialized services must be provided efficiently by the component providers in a multisourced operating model.
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The author: Ms. Patterson is a leading expert in IT service delivery and specialist in Service Management and Inte- gration (SIAM) in multi-sourced IT operating models. Over the last 7 years she has guided clients from various industry sectors through the lifecycle of defining and im- plementing IT sourcing transfor- mations, including the design of operating models, construction of change plans and contract negotiation. In particular she is known for architecting and suc- cessfully delivering standard ser- vice solutions resulting in signifi- cantly reduced operating costs and improved service quality. Contact: see PDF, Web: www.isg-one.com