IT Shared Services - Is it the right option for you?
Shared Services - nothing new.. It's a well recognized term widely used across companies.. mostly done as a means of consolidation of the non-core business functions to improve efficiencies. You may also have heard of this model being followed for HR, Purchasing, Finance etc.. across companies. IT, being one of the cost centers, is also being done on shared model in medium to large organizations that are spread across geographies having multiple business units.
Focussing on the IT operations, you will typically have two major types of activities going on.. discretionary work and non-discretionary work. The former would be strategical in nature following the business vision as a means of increasing competitiveness and market presence.. using IT as an enabler to achieve the goals. The latter is typically a 'Keep-the-Lights-On' work to support the business as-usual and to carry out maintenance activities on the IT systems and applications. Though the key focus will be on the discretionary work, companies cannot afford to ignore the importance of the sustenance activities as it will be the life-line of the ongoing business operations.
However, the current need, due to global economic slump, would be to drive down the costs of maintenance and support of the IT systems and applications to effectively reuse the funds on managing the growth of the business. Many organizations have successfully outsourced their IT operations to many low-cost centers across the world and have realized huge benefits.. Especially, under current situations, CxOs are compelled to find newer ways to further reduce their costs while maintaining the service levels agreed upon with the business users..
Here comes the 'Outsourcing of IT services to be delivered on Shared Services model' concept.. nothing but.. An IT service provider located in a low cost place delivering Application Management Services remotely serviced by a pool of engineers and consultants common to multiple customers. This pool can be divided based on various factors.. technology, industry vertical, type of services etc..
Shared Services bring in additional cost savings through optimum resource utilization, improvements due to efficient and standardized processes, leveraging the productivity gain due to the knowledge acquired in supporting multiple other customers.. overall able to achieve significant cost and efficiency benefits in the long run.
Having said that.. I can sense the question in your mind.. 'Is it the right option for me?' Let us look at some of the key situations that could be the criteria or the trigger point to kindle your thoughts on moving to this innovative service model...
Application landscape has too many applications/modules but does not need FTEs for each one as ticket #s are low
Looking for 24x7 support but am concerned on the additional cost involved for the extended coverage?
Looking for a model to load people for average volumes of work and not for peak volumes of work.
Looking for a Scalable model to include occasional Minor Enhancements work but does not need dedicated FTE all the time?
Looking for a Flexible model to address sudden surge or fall in tickets due to business dynamics?
Looking for any low-cost option to ‘Keep-the-lights-on’ while maintaining service levels?
etc...
Does your current application landscape fit in any of the above.. or you just simply looking for options to reduce costs.. IT Shared Services model could just be the right option for you.
