The future of managed IT
Is there a better way for telecommunications companies to source essential IT managed services?
We think there is. When telcos source transaction processing or cloud services, firewall, or business intelligence/data-mining provision, there is a paradox with traditional commercial engagements.
The IT service provider is in business to sell more, and the telco, seeking to minimize operational cost, wants to consume less. As a result, trying to protect the interests of both parties can result in inflexible sourcing agreements.
With telcos working so hard to achieve maximum agility, there has got to be a better way – and we believe we have found one.
The Atos BVD (Business Value Driver) approach establishes:
- Agile access and scalability for key IT managed services
- Shared risk and reward – creating measurable incentive for both parties
- Performance metrics based on business value rather than pure IT data
This is the future of managed IT service in telecommunications.
Changing the Service Model
The agility with which telecommunications companies need to identify and act on opportunity must be matched by all those who support them. This is particularly true for the commissioning, delivery and billing of managed IT services.
It is time to re-think traditional approaches.
Fixed-term contracts based on pre-set Service Level Agreements (SLAs) cannot deliver this agility. Paradoxically, the rules developed to safeguard the relationships between telecommunications companies and their managed IT service suppliers, have become a barrier in the new telecommunications landscape.
The Business Value Driver Model
Atos has developed its BVD model as a framework for a new kind of business partnership. As soon as telecommunications companies are prepared to share strategy with their IT service partners, then it is possible to create more profitable relationships.
In the new model, core IT services, such as cloud-based infrastructure and support, are redefined in terms of business delivery. For example, instead of putting the focus on measuring the impact of network latency on VOIP into the customer contact center, we may measure IT service performance in terms of increased performance per call center agent.
Easing Transition and Transformation
Shifting from traditionally pure outsourcing models to the BVD’s shared business performance metrics is a significant change. We fully understand that this transformation in business and IT process must be carefully managed and monitored.
We propose a highly-disciplined and practical three-step transition process, in which existing IT-based service contracts are moved through a transitional phase, in which micro business performance metrics are established and observed. Once this phase of transitional refinement and test is complete, we can crank up the value and really start to ensure that Atos can turn managed IT service into pure business vale.
Ready to Go
The success of the BVD approach hinges on the intelligence with which the individual business value drivers are identified and defined for each customer – because they are so closely linked to strategy and business development, each telecommunications company has their own BVD set.
Atos has already had considerable success with this approach, helping one of Europe’s leading mobile players to target specific client demographics with agility and precision.
Whether you are reviewing current managed IT service provision, or preparing to implement major strategic initiatives, you have everything to gain by bringing the BVD approach into discussion.