Reinvent Value of Infrastructure Services
Businesses today see IT as a potential enabler for business growth. CIO needs are broadening and priorities are aligning with business. IT complexity is growing with the likes of virtualization, mobility and cloud computing gaining traction. Disruptive innovations are changing the way infrastructure services are offered, delivered and managed. Customers are seeking ways to reduce waste (optimize cost), improve employee productivity, enhance end-user experience, and spot trends and problems ahead of time to ensure revenue growth. This calls for service providers to change the way they deliver services.
While the end-user might be happy with the provider’s service support, the customer/business may not see value in the job delivered or desired for the outsourcing success. It is important that the outsourcing success attributes are clearly articulated and understood (risks, issues and investment) at the start of a project and revisited at regular intervals. This benefits the management by setting realistic expectations and fostering partnership behavior.
Service providers need to demonstrate tangible business value to customers by waging a war on waste – that results in streamlined processes and reduction of IT and operational expenses. Infrastructure and process standardization and cloud services are two key ways to achieve this. For customers and service providers, cloud is a question of “When” rather than “If”. Helping clients adopt and migrate to cloud is a must for service providers. Commodity and non-core or low risk services can easily migrate to cloud. Cloud storage is a smart alternative to managing explosive data growth compared to storing it in-house. Service providers should be able to offer solutions and deliver cloud orchestration services. Alternatively, providers should take a closer look at developing a plan/offering for rationalizing the application portfolio. Eliminating redundant applications and expenses around it could make way for new investments in other areas.
Analytics (with big data), information management processing, monitoring and diagnosing pain-points throughout the business processes form the basis for providing future services based on preventive and predictive ability. With lines of labor arbitrage benefits blurring, service providers need to bring in automation and an autonomics approach to their services. This will not only help them achieve non-linear growth (more from less for the customer) but also bring efficiency and effectiveness in their services, and manage hyper-competition better.
Service providers should look at rationalizing their portfolios. Mobility is becoming ubiquitous and will co-exist with desktops/laptops. Developments in cloud computing, proliferation of thin client mobile devices in the workplace, and virtualization will have a cascading effect on infrastructure in-house or on cloud. Providers should look to rationalize and replace their technology-specific SILO offerings with customizable modularized offerings to deliver better business outcomes/SLAs.