Archive for the ‘Managed IT services’ Category

What can be considered ‘warranty’ for a managed IT service?

September 27, 2012

In the plethora of IT offerings companies are faced with, Imageproducts and services have become extremely competitive not only with regards to price, but also in offering their assurance that what they offer is of good quality, will last in time and can deliver on its promise. As this has become the norm, no business would dare buy hardware or software that came without a written warranty. But how can organisations have some sort of guarantee of quality and efficiency when what they want to buy is not a product but a service?

Best practice is designed to understand the utility and warranty of any investment and it is important the distinction between the two is understood. The utility of an investment is the recognition of whether it is ‘fit for purpose’; the warranty goes beyond that to recognise whether your fit-for-purpose product is actually fit for use.

Firstly, it is important to understand which aspects are central in defining what can be identified as ‘warranty’ for a managed service. A good track record is of course imperative for the Service Provider, but this does not necessarily mean a very large number of clients of all types and sizes. Larger and widely-known Service Providers are not automatically the best choice for an organisation – can they understand your particular business, give you what you need and deliver the most cost-efficient service? You will find that a provider which is specialised or has relevant experience in dealing with organisations that are very similar to yours in type, size and needs might be the best choice for you. So this is what you should look at as a guarantee: a provider that has successfully carried out projects for clients that are similar to your organisation.

At the same time, it is important that the provider does not offer you an out-of-the-box solution for ‘all organisations like yours’. You might be similar in your structure and needs to other organisations, but this does not mean that you do not have some important differences. For example, NHS clinics all have similar needs and structure, but are very different in the way they deal with them – most clinics will use customised software and have different types of end users. The same is true for financial firms, from banks to private investment or currency exchange firms, where efficient and tailored IT is a vital element for their success.  In fact, every sector is vastly different, so in a selection exercise, be sure to understand the Service Providers you are talking to can offer positive evidence that they have supplied similar solutions.  Further to that, Service Providers that service a wider range of sectors will typically have a greater advantage in providing bespoke or ‘tailored’ solutions for your organisation.

These aspects are crucial in your choice of Service Providers, but what can guarantee the quality of the actual service itself? This mainly lies in the Service Level Agreement (SLA), which outlines agreed levels of performance monitored through certain metrics such as First-Time-Fix rate, calls answered within a set time, Abandonment rates, etc. These targets need to be consistently met, and if they are not, the Provider will be in breach of the SLA, which can have a financial impact. Consistently missing targets might mean the Provider losing the client and, in the long run, their reputation as well. With these metrics in place, it is in the provider’s own interest to perform at their best and not incur in fines or contract termination.

The choice of SLAs can make the difference between real and perceived efficiency and inefficiency. It is good practice to spend some time deciding, together with the Provider, what metrics to adopt (some will be more relevant than others) and where to set targets. Metrics have to be very detailed – setting a typical ‘70 % First Time Fix rate’ on its own is not enough. Ask yourselves: what counts as FTF? It normally refers to simple and common issues dealt with by Service Desk staff; but should printer cartridge replacement be considered a FTF even if it’s done by desk-side engineers? If some end users insist in a desk visit will it not be included in the FTF rate? This allows to have a clearer picture of how efficient of inefficient the service is and to understand if a managed service solution is right for your organisation or should be somehow modified to improve performance.

These metrics need to be tangible and agreed before they are incorporated into a live service.

In conclusion, we could say that a ‘warranty’ for a managed service should cover both the Service Provider and the service offered. It is a guarantee of quality if the Service Provider has the right track record for your company and the appropriate SLAs are in place, as well as fines and penalties for breach of the agreement. Only by carefully choosing the Service Provider which will manage your IT service it is possible to achieve efficient IT which is able to support and enable business success whilst bringing cost savings and general efficiencies to working practices.

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Ben Whitehead, Service Delivery Manager

This piece has been published on ITSM Portal: http://www.itsmportal.com/columns/what-can-be-considered-warranty-managed-it-service

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To learn more about managed services visit: http://www.plan-net.co.uk/index.php/support-services/managed-it-support-services.html

 

Selling Managed Services to the CFO

August 28, 2012

It can sometimes be very difficult for IT Managers, CIOs and other Senior Managers within the business to get the CFO’s buy-in for an IT project. Many find it even more challenging when they are considering proposing a Managed Service model, where a third party manages the IT Service Desk or parts of it, taking over an in-house function.

The CFO wants to know what the benefits are, especially in financial terms: how does it save us money? What are the risks involved? And finally, why would using a provider be better than doing things in-house? Luckily, it is not difficult to show the return on investment of this sourcing solution if all the factors are accounted for.

Often, the perception in the market place is that a managed service trades in-house knowledge and control for greater cost. This is particularly the case when the organisation does not present the correct business case and/or is unaware of the true expense of its IT Service.

With this in mind, the very first step in preparing the business case for the CFO to review is consider all the financial implications of having an in-house solution. Armed with this knowledge, one can now consider the business case profile for the CFO.

The first and most tangible benefit of a managed IT service is cost. Expenditure related to managing the IT Service Desk can be extremely variable: it includes HR costs, sickness and holiday cover and training, as well as the design and implementation of new strategies and best practices to ensure service efficiency and continual improvement.

With a managed service, all of this becomes a fixed monthly cost, smoothing out the expense and providing known, quantifiable out-goings. It also lowers the risk profile of the service to the business with defined Services Metrics and the Managed service providers taking on the absence cover and staff training.

There is often a general apprehension amongst companies in having a third party take care of an internal function, particularly one that is viewed as the face of IT to the rest of the organisation. It is important to note that, with a managed service, the organisation always retains a level of control over the outsourced function, which allows them to focus on strategic business decisions, rather than grappling with the day-to-day management of the service desk.

Unlike full IT outsourcing, in a managed service the organisation normally retains ownership of all hardware and software, as well as locating the service desk within their premises rather than elsewhere. The organisation sets the Service Level Agreements (SLA) and if these are not met, there will be consequences – normally a fine and, in the long term, the non-renewal of the contract. These SLAs are constantly refined and honed as the business grows and changes.

It is easy to see that, in the end, it is the service provider that risks the most. If they fail, the organisation can find another provider or return to in-house provisioning, but they will damage their reputation and this affects their chances of getting new clients in the future.

Additional benefits include the immediate access to skill-sets and expertise which may be in short supply or not present internally. A fresh approach can result in spotting inefficiencies and improvements that internal staff are used to and don’t see any more, or alternatively are trying to cover up to defend their work and decision-making.

All in all, a managed service is a cost-efficient solution that can increase an organisation’s competitive advantage. There are different models which can be adopted: an organisation might only outsource its helpdesk or desktop support staff, the out-of-hours function, or use the provider for its flexibility in providing an amount of temporary staff for seasonal increase or holiday and sickness cover.

With the right model, tailored to the organisation’s specific needs, IT can become a cost-saver and a real value-add. Managed Services can not only support the business but also help it grow, flexing with the needs of the company and allowing the CFO to invest finances in other areas and projects without having to worry about unexpected IT support costs any more.

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Jennifer Grant, Service Delivery Manager

This article has been published on Service Management: http://bit.ly/Om1Y7r

7 things you should know about Managed IT Services

April 26, 2012

With more and more companies looking at outsourcing solutions for all or part of their IT, it is important to highlight the main features of a Managed Service, especially as an alternative to full outsourcing or off-shoring. Here are 7 things organisations should know about Managed IT Services:

1) It’s not all or nothing
A common misconception is that you have to outsource your entire IT function in order to obtain the cost-efficiencies you are seeking. This leads to the ‘fear factor’ of loss of control/influence of back office Services, and therefore a reluctance to explore the breadth of options available.

The approach more and more firms are adopting is one of precaution whereby they test the theory by outsourcing specific functions to suppliers. It is becoming more commonplace for organisations to outsource their 1st & 2nd line support, an area which is typically not bespoke and more easily replicable by a supplier.

However, the key to success of any outsource venture is the selection of vendors. A plethora of suppliers exist within the market, but it is critical that the supplier of choice is one which is aligned to the specific requirements of the business and does not dictate the provision of Service through a ‘one size fits all’ approach.

You could choose a service provider for out-of-hours support, so that you don’t have to rely on an internal rota system where staff are paid 1.5 or 2 times their hourly rate to provide support from their beds.

Or you could even just get a few extra resources to cover for holidays and/or to provide additional capacity during peak times which compliments and supports your existing solution.

2) It can give you more control over your IT
Whilst an in-house service seems like the best way to be in control of your IT, it is common for difficulties to arise in terms of reaching your target service levels and delivering the high levels of customer service demanded by business users. These limitations are often related to the existing skills, resources and budget that are available internally; there are also elements of staff management that can affect the final results, such as sickness, holiday cover, staff turnover and so on.

Opting for a ‘partial’ outsource means the only thing you need to do is set the appropriate SLAs and then it’s up to the supplier to meet them – using whatever tools and techniques are available, be it up-skilling staff, Continuous Service Improvement (which should be a fundamental delivery item of any managed service) or implementing new processes. In this way, you have more control over the most important thing – the service levels your organisation needs.

You should be looking for someone who wants to build a long term partnership with you and whom you believe will be seen as an extension of your existing IT function, and not ‘that 3rd party lot that sit in the corner!’

3) It’s safer than other types of outsourcing
The additional attraction of ‘partial’ outsourcing is that you retain ownership and control of your systems/data and how they are stored and managed. This is something which has become even more critical given the requirements of data protection and client confidentiality, something which ISO27001 is seeking to address.

This means, for instance, that there will be less issues concerning security of your data than if you used an offshore service desk, where the infrastructure upon which your data is stored and processed is owned by another company based in a country thousands of miles away and where there might be different regulations and laws concerning information security. It is also safer than a fully outsourced solution where all operations are run at another site and using another company’s infrastructure.

4) You will not lose your staff
Some companies which have an internal support function are worried about losing their trusted IT people who have been working for them for years to another company, and not being able to get them back if they decided to do a U-turn after a failed outsourcing contract.

Your employees rights are protected under TUPE, the Transfer of Undertakings (Protection of Employment) Regulations, which ensure the terms & conditions at transfer are protected.

This means they are not lost forever – if things don’t turn out well and you want to bring the service back in-house, you can TUPE them back quite easily or onto another supplier.

5) It opens you to new opportunities
The strong benefits to outsourcing are not only the increased levels of Service but the increases in efficiencies and therefore the reduction in cost, something which is clearly a driver for all organisations in the current climate.

With an in-house Service this is often impossible to deliver i.e.

Reduced costs = Reduced Efficiencies = Reduced Service

Outsourcing opens up the possibilities to the adoption of new models which are affordable thanks to the various options available. For instance, a shared out-of-hours service that supports a number of organisations which are similar with regards to type, sector and requirements, with which to share the costs and ability to access high skills; or a dedicated peak-times service in addition to your own in-house desk to help during periods of increased demand, such as a particular event or a busy season.

6) The costs can be shared
If your organisation needs highly efficient support with specific expertise, but does not have the budget for this, a shared service can be an ideal solution. It provides access to the high skills that might be otherwise unaffordable for your organisation but at a much lower price, as the costs are shared between different organisations. Best results are obtained if the participant organisations are of similar type and with similar needs, and if the number of clients sharing is kept to a minimum.

7) It can create a strategic advantage
An efficient, reliable and fast IT Support where all you have to do is set SLAs and expect them to be met can be an asset for certain types of organisations, such as those in the financial sector, especially banks. With so many financial services relying on fast and efficient technology and 24/7/365 uninterrupted accessibility, the less downtime and inefficiencies you have, the more probability you have to gain ground in the market and beat your competitors that have a weaker IT service.

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Pete Canavan, Head of Support Services

This article is on Sourcing focus:

http://www.sourcingfocus.com/site/opinionsitem/5372/

Are managed IT services set to grow this year?

January 25, 2012

Business of all sizes and sectors across the country are still worried about the poor conditions of the current economic environment, which is not set to improve this year, as analysts and experts have already announced. With no way of avoiding this situation, organisations can only try to make the best of it, and perhaps use it as an occasion to really assess what expenses are essential to their business and how they can take advantage of the weakened financial setting. It is important to try to make the best of what one has and what is available in order for an organisation to survive or even grow during hard times.

Of course when money is tight the Service Desk is one of the departments more likely to suffer, with all the possible consequences on the rest of the business. With most IT projects scrapped from the beginning, it takes a good justification to invest in anything more expensive than a screen wipe. Yet correct management of the Service Desk, including continuous training of IT staff, an inexpensive absence cover system, continuous service improvement ethos, updating service management processes to the latest and most relevant best practices and meeting the appropriate targets can still be possible without incurring in eye-watering bills. This is the principle behind a Managed IT Service – a Service Desk can work to a good standard at all times, because someone else is taking care of it and all variable costs become fixed.

Various types of IT outsourcing have become popular in the last few year – from offshoring to cheaper countries to having only some Support staff managed by a provider. Different options work for different organisations, but generally speaking the popularity of one over another during a recession or uncertain economic environment depends on a series of factors and in particular: low risk; ROI; ease of adoption/set-up; as well as a financial factor.  In times like these, where one doesn’t want to be involved in large projects or revolutionise their whole IT department and have to re-think the way they deliver and use IT Support, a radical option such as offshoring or full outsourcing might not be ideal. With a Managed IT Service Desk, the ‘status quo’ of the IT department should not be affected as the expectation is the supplier will implement a robust framework which ensures that existing Service Levels are at least maintained, whilst transitioning the Service Desk to a ‘future state’ model over an agreed period of time.

This meets the requirements of ease of adoption and risk, as it is easier to set up, reverse, retake charge of or switch provider, when compared with a fully outsourced or offshore solution. This option can also assure a certain level of information security compared to a fully outsourced service, as the Service Desk will be based at close sight within the organisation’s premises (unless otherwise requested) and the system, and therefore the data stored and processed within it, is owned by the company. The minimised risk makes this a good choice when one cannot afford to take risks.

As for the financial factor, most outsourcing models will eliminate the cost of certain projects such as staff training or service management implementations, and make variable costs become fixed: the provider will agree to meet certain SLAs for a set price, and it is up to them to provide the appropriate staff upskilling, best practice processes and so on within their budget, in order to meet targets. But a managed IT service will not require the extra cost of moving the service desk elsewhere, hiring or buying new equipment, sending managers over to another place, city or country to check on how the service desk is doing and, also, the costs involved in switching back to in-house or to another provider if the initial project failed.

Finally, the return on investment is clear and demonstrable. Having an expert provider taking control of your existing IT Service Desk will increase productivity and efficiency, reduce the volume of incidents and Service failures and ensure a significant part of your IT spend is fixed and controlled, giving the company peace of mind (IT becomes someone else’s problem) and allowing business to function at its best.

With these premises, it is likely that managed IT services will be chosen over and over again as an option to meet the demanding IT standards of a modern-day organisation in a time when any investment must be carefully thought and justified, and the return on investment clearly proven. This much needed headache relief can allow companies to carry out their business without having to worry about the quality and sudden expenses related to their IT, and therefore get a better chance to survive or even increase their work in these hard times.

Pete Canavan, Head of Support Services

This article is on Sourcing Focus: http://www.sourcingfocus.com/site/opinionsitem/4807/