Archive for the ‘Minimising IT costs’ Category

Bring IT support back to the 1st line

March 27, 2012

In a time where cuts to organisations’ IT budget are often becoming a necessity, taking a good hard look at role redistribution and service desk management could definitely help organisations diminish support expenditure, and perhaps divert the IT budget towards new projects. Organisations can even potentially achieve more benefits by better managing incidents, gaining increased speed of resolution and improved service levels while they save money, creating even more cost-efficiencies. A way to achieve this is by bringing more support work back to the 1st line.

It is common knowledge that analysts working at 1st line level have a lower cost due to their lower skills, while 2nd and 3rd line resolvers – desk-side, network and server support staff – are more expensive, as their skills are higher and more specific. Incident resolution rates also vary: it is faster to resolve an incident at 1st line due to the simple nature of incidents that are taken care of at that level, while 2nd line analysts take longer to resolve issues as these tend to be more complex, or require physically moving to reach the user’s device.

Over time, 2nd and 3rd line resolver teams have been including support activities in their daily routines which, when analysed, often include frequently occurring and process driven tasks. These tasks probably sit where they do because at system or product implementation, all related support activities were adopted by the deploying team without any later thought as to whether some of the tasks can be moved elsewhere.

At the same time, 1st line teams have become more technical and able, with greater access to system tools and the permissions to use them. This has had a positive impact on first time resolution and we have seen the log-and-flog approach begin to decline.

Considering both of these evolutions, opportunities exist to release system specialist time, reduce the cost of service provision and increase first time fix at the Service Desk. By effectively using ticket closure category information from the service management tool, analysis can be undertaken of what 2nd and 3rd line resolver teams are actually resolving.  A likely outcome is that tasks will be identified which are process driven, and therefore can actually be performed by a more junior (or low cost) resource. As long as the process can be documented and the permissions to do it are provided, it’s more than likely that the 1st line Service Desk team can pick up the work.

As an output from some analysis, this may look like – x% of 2nd line resolutions are procedural and can move to 1st line, as a result, 1st line can increase their first line fix from y% to z%, and thereby improving the service to the user-base.

The cost savings of such an exercise could be considerable.  By moving tasks into the first line, the tasks are being moved into lower cost people. This may mean that the 1st line team grows and the other resolver groups reduce, the outcome of which will lead to a demonstrable cost saving.  Furthermore, with tasks having been removed away from the 2nd and 3rd line teams, opportunities will present themselves as a result of the increase in available time within these groups, e.g. resolver teams can improve their performance as they will have more time to work on the more complex problems, and team resource can be released more readily into project work and thereby decreasing the need for expensive contractors.

Such change, however, can’t quite happen overnight.  The analysis needs to be good, and the recommendations of tasks to be moved to 1st line need to be realistic.  Then, through the controls of a well-run project, tasks are tested as being viable duties that the 1st line team can assume, and when signed off, can permanently remain at first line.

The measures of a successful exercise will be ultimately visible in the reporting. The first line fix percentage will increase, the ticket resolution volumes at the resolver groups should reduce, and costs should reduce – perhaps by reducing staffing, project or contractor costs.

The perception of the overall quality of the IT service should also improve: frequent support activities will be completed faster, which improves customer satisfaction; and core systems will receive greater attention from their specialist support staff, leading to improved availability and functionality.

Jon Reeve, Principal Consultant

This article has been published on Director of Finance Online:

http://www.dofonline.co.uk/content/view/6131/118/

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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/

Minimising IT downtime for finance professionals

November 30, 2010

High-value users downtime costs firms thousands an hour

High IT availability is nowadays vital to the majority of organisations across all sectors. For the financial sector, so heavily reliant on IT, it is ever more crucial that the business-critical systems work at maximum efficiency and that any downtime and disruptions are minimised. To high-value users, delays, an inability to access data or email and lack of business continuity in any other form have an overall cost that cannot be ignored, especially in an unstable economic environment such as the one we are currently experiencing.

If research shows that the average yearly revenue loss due to downtime in UK companies amounts to just over £200,000, when it comes to the financial sector this increases to £220,000 – the highest across the various sectors. This figure, reported in the recently published study ‘The avoidable cost of downtime’ issued by CA Technologies, is not surprising. If you add up the cost of email, servers, data centre and crucial applications downtime and take into account the high hourly cost of a finance executive who is unable to work, it is not difficult to see how the overall figure can reach hundreds of thousands.

A solution to minimise downtime and disruptions and the resulting losses is evidently needed. Efficient IT Support, tools and technology that enable business continuity and resilience are key to achieve cost-efficiency, together with implementation of the Best Practice frameworks tailored to business requirements.

Investing first of all in a Best Practice framework such as the Information Technology Infrastructure Library (ITIL) is an excellent base for any improvements to IT. By taking the processes described by the discipline and adapting them to business needs, major cost-efficiencies can be reached, and in turn, users will experience a better, more consistent service.

From a ‘platform’ point of view, the adoption of one or more forms of Virtualisation, be it desktop or server based, is another strategy which can be used to reduce downtime. “Live migration” features make it far quicker for the Service Desk to bring users back on line when they experience a problem with their desktop and failover  solutions found in lots of virtualised server environments can help to safeguard against data loss and mass user downtime caused by a fault at the ‘back end’.

Looking at the Service Desk aspect of IT, adoption of some self-service tools and appropriate Key Performance Indicators (KPI) can help to make incident resolution faster and smoother, minimising disruption and to some extent, even the number of repeat incidents. The proportion of first and second/third line technicians and their skills should be reviewed, so that most incidents can be resolved at first line level. Support staff should be able to ask finance professionals the right questions in order to understand the nature of the incident, and to resolve it quickly or promptly escalate it to Desk Side or remote support.

The cost savings achieved through the appropriate management of people, process and technology to financial firms can be huge. If the systems are virtually never down and data is practically always accessible or quickly recoverable, losses deriving from downtime are virtually annulled and high-value users can carry out their work without unpleasant interruptions, helping the firm reach a level of strategic competition previously unseen.

Richard Forkan, Business Development Director