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Transition to Transformation (T2T) - Going beyond SLAs

IP.com Disclosure Number: IPCOM000202446D
Publication Date: 2010-Dec-15
Document File: 5 page(s) / 135K

Publishing Venue

The IP.com Prior Art Database

Abstract

With a continuing focus on IT spend, clients expect service providers to help them achieve a better return on IT investment. While IT vendors focus on optimizing the labor cost, there is a realization to look into strategies that go beyond the obvious. Traditional Transformation or its flavor has not been able to produce results, quickly and effectively. IT vendors and consulting agencies have hence been roped in by clients to suggest a focused approach leading to IT strategies that are easy to implement, produce quick results and generate significant benefits with least upfront investment. Meeting service levels is no more a differentiator. However, most of the times, clients would like vendors to focus on immediate, short term business requirements. Attached disclosure hence proposes to develop a transformation framework. Called "Transition to Transformation (T2T) - Going Beyond Service Level Agreements (SLAs), the framework aims to: look at various transformation opportunities leverage existing data of the client provide & benchmark multiple roadmaps let client choose transformation roadmap critical to their business

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Transition to Transformation (T2T) - Going beyond SLAs

1.0 Executive Summary:

With a continuing focus on IT spend, clients expect service providers to help them achieve a better return on IT investment. While IT vendors focus on optimizing the labor cost, there is a realization to look into strategies that go beyond the obvious. Transformation or its flavor has not been able to produce quick and effective results. IT consultants have hence been roped in by clients to suggest a focused approach leading to IT strategies that are easy to implement,

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IT transformation is one of the common levers proposed and agreed to by both clients and vendors to reach the objective of return on investment, quicker and effective. It is normally considered as a potential lever but a risky proposition if it has to be introduced early in the engagement phase, though few organizations proactively implement transformation projects early during the engagement phase of an outsourcing contract.. While planning for transformation is agreed to start early in the engagement cycle, implementation is either delayed or introduced as an after thought to enable process changes.

In most of the situations, clients expect more for less and ask the vendors to help them achieve this objective. The high level ask of the clients can be summarized as in Fig. 1.

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Fig. 1: Clients expect more from less

2.0 Phases of Engagement for transformation:

IT transformation can happen during different phases of association with the client:

• Due Diligence: Vendor suggests an industry standard transformation as a part of outsourcing. With the focus on transition being the immediate requirement, client's appetite for transformation is limited.

• Transition: Vendor, while working on application transition, identifies opportunities that

provide incremental improvement in productivity. As these are based on limited visibility of

the vendor to the client's landscape, focus on transformation gets diluted.

roduce

quick results and generate significant benefits with least upfront investment.

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Steady State: Once transition is complete and the service levels stabilize, vendor and clients may look for productivity improvements through transformation projects.

3.0 Manage information

Though clients have information on application management in various forms and with various departments, vendors have a challenge in getting this data at the right time and then use it for analysis. Vendors, hence, try to start gathering data afresh, in the format that is helpful to make an analysis and take information management as a project in itself. Figure 2 illustrates the kind of data that the clients have and would like the vendors to leverage:

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Fig 2: Data the clients have

This leads to a situation where clients expect information they shared with vendors, during various interactio...