In addition, “clients should try to structure these as output-based or managed services contracts with committed productivity improvements,” says Arora. Buyers should also be amenable to the high degree of offshoring that keeps prices competitive. Unique rules of engagement: Standardized processes and methodologies, investment in automation tools, and scale are important considerations that will translate into lower costs, says Arora. As visa-related concerns have limited the ability of offshore or global IT services providers to ramp up resource in onshore locations quickly, CIOs may look to the staff augmenters instead. When to use them: IT leaders can use these on-site contract workers to meet either short- or long-term requirements. What they do: The staff augmentation role is not new it’s a traditional IT service approach that enables IT leaders to increase and decrease staff size based on needs without taking on additional liabilities that come with hiring more full-time staff.
#CAMIONETAS TRANSFORMER EN GUATE SKIN#
These engagements tend to be more successful when the provider has some skin in the game, Arora says. Service integrators are typically compensated based on business outcomes or metrics that serve as a proxy for end-to-end IT capabilities. CIOs should also make sure there are no actual or perceived conflicts of interest between the integrator and the integrated if other providers view the orchestrator as a competitor, it won’t work. Unique rules of engagement: When evaluating service integrators, says Arora, a history of successfully managing similar-size engagements is key. IT leaders may contract with these companies to integrate multiple staffing augmentation firms or automation providers, curate a startup ecosystem, or simply reduce the overall management overhead and complexity of their multi-sourced portfolio. These companies are able “to manage a variety of suppliers and address the underlying risk at an individual supplier or portfolio level,” says Arora. When to use them: A service integrator may be valuable to an IT organization that does not have the ability to orchestrate their own portfolio of providers. A number of large IT providers have built capabilities in multi-sourcing orchestration over the past decade, providing oversight, governance and management for complex sourcing environments. What they do: As the need to use multiple outsourcers has grown, so too has the complexity of managing the outsourced environment. By looking at outsourcers not based simply on scale but on the specific role they will play, IT leaders can assemble the right mix of capabilities to best enable their organization’s technology and business strategies. Now is an opportune time for IT leaders to reassess their IT service provider mix. Or they may want to look to third parties to manage their outsourced environment or to spearhead their transformation efforts.
IT leaders may also need a partner to handle legacy application maintenance and production support in order to devote more of the in-house IT organization to transformation efforts, for example. When it comes to the most cutting-edge tools, smaller startups or niche providers may have more of the capabilities required. “Companies had rules about not wanting to work with companies below a certain size or scale threshold citing governance or risk capabilities.” However, as rapidly advancing technology capabilities have emerged as key enablers of business differentiation and growth, CIOs are finding that they instead need different types of IT services providers to meet all of their needs. “Traditionally, size was a good proxy for capability, especially when technology was viewed fundamentally as an enabler of efficiency,” says Jimit Arora, partner in Everest Group’s IT Services practice.
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