In technology, things happen at the speed of change. “Evolve or get left behind” is a familiar phrase we’ve all heard. Technology is advancing at warp speed and companies are finding it difficult to manage their ever-growing and ever-changing support ecosystems. Now more than ever, companies are moving beyond maintenance and support services to Read More »
“Simply put, successful multisourcing requires establishing end-to-end visibility, reporting and accountability for services that are delivered by multiple suppliers.”1
-Bill Martorelli, Principal Analyst, Forrester Research
For the past two decades many enterprises managed their IT vendor relationships pretty much the same with batch updates and reviews. That worked well when they were fully outsourcing their IT function with a single service vendor. But, in our hyper-connected world IT departments are managing five times as many providers as they were seven years ago and the pace and scale are increasing.
The landscape of IT has changed. The single-source provider era is quickly coming to an end as more companies embrace the world of multi-sourcing. In a 2014 report by IAOP & Information Services Group (ISG) Annual State of the Industry1, it stated that the number of enterprise IT organizations using multi-sourcing as a strategy increased by 75% in that year and predictions for 2015 shows continued growth.
Companies are moving more rapidly to a multi-sourcing strategy to achieve greater agility and improved customer satisfaction, and it’s paying off. Effective multi-sourcing companies are experiencing improved performance, reduced IT costs, acquiring best-in-class expertise while freeing up time and resources so personnel can focus on the company’s core business.
Automation Is at the Forefront of IT Change
The speed of change in IT is getting faster and innovation via automation is at the forefront of this change. FAST IT is helping enterprises keep up with this accelerated pace.
Fast IT simplifies operations at a time when complexity is mounting — and IT budgets are flat. By offering automated, programmable, and agile infrastructure, Fast IT frees IT organizations from manual configuration, changes, and maintenance.2
In my January blog post, Building Innovation: Achieve Fast IT with Customers, I shared with you that if companies are going to deliver new solutions at a more rapid pace, IT needs to be able to integrate and automate all support interactions that it is responsible for delivering.
There Are Challenges
Just as there are benefits with multi-sourcing, there are some challenges. Multi-sourcing creates new complexities that can stand in the way of business progress. Forward-thinking, proactive companies can address these challenges head-on by answering crucial questions such as:
- How do we implement end-to-end delivery methods in a multi-vendor environment?
- How do we manage the configuration of our devices when changes are being made by multiple outsource providers?
- How do we onboard new providers with minimal effort and impact on the ecosystem?
Changes made within the ecosystem can easily disrupt and fragment service delivery causing your company and other service providers to be out of policy, SLA or regulatory compliance.
Case in Point
We recently saw a situation at a large financial institution where the customer was facing a security audit that they were most likely going to fail. They called us for help. In just two-and-a-half weeks following service activation we had updated nearly 2,000 configurations and the company passed their security audit. They were so pleased with our performance they gave us 23,000 devices to manage for policy, configuration, and change.
But, that’s not the end of the story. The bank wanted to benchmark the effectiveness of their service providers against their established service level agreements (SLAs). Immediately we knew an automated closed loop process was needed. Our Compliance Management and Configuration Service (CMCS) coupled with ServiceGrid fit the bill.
When this project goes live, ServiceGrid, a tool that gets the right data to the right place and person, will be used to connect the customer and their service providers ticketing systems to one another as well as to CMCS. In turn, CMCS will perform a baseline analysis of all connected network devices and elements and automatically stabilize and upgrade them to Corporate Standards. This improves communication among all connected parties. It also gives the bank greater transparency into their vendor management activities and provides real-time compliance monitoring.
Combining ServiceGrid and CMCS enables us to automate multi-vendor network configuration and compliance while giving the customer higher value and a better outcome than if we offered either one of the services alone. The bank’s desire to build a robust, elegant, secure, and seamless multi-party network became an opportunity to let two of our premier services shine, making the future brighter for our customer and Cisco Services.
What about you? How is your organization addressing configuration management in a multi-sourced environment?
- Annual State of the Industry Jagdish R. Dalal, IAOP
- Fast IT: Accelerating Innovation in the Internet of Everything Era
Last month, I attended the International Association of Outsourcing Professionals (IAOP) Outourcing World Summit in Phoenix, Arizona. I had the chance to glean fresh insights from industry-leading practitioners and get a global view from sourcing executives.
Though there has been an evolution in the outsourcing industry, one thing has not changed: outsourcing is a winning strategy. In the recent study from IAOP & Information Services Group (ISG) Annual State of the Industry 1 presented at the event, it stated that “Multi-sourcing as an outsourcing approach increased by 75% from last year’s percentage”. The predictions for 2015 also show continued growth: “51 percent of respondents in the survey said they expect to pursue more outsourcing opportunities during the year”.2
Multi-sourcing – where a customer uses several service providers to provide a single scope of outsourced services, is now the new norm in outsourcing. In today’s organizations, outsourcing is increasing and each additional outsourcing agreement makes it more difficult to holistically manage IT service & support.
A new way of thinking about SLA’s is required to make multi-sourcing effective
Service-level agreement (SLA) management is the process of negotiating, defining and managing the levels of IT service. SLA management is a key challenge that organizations face as part of outsourcing and it is becoming increasingly difficult with multi-sourcing.
Most organizations invest heavily to define SLAs. If you talk to the service tower owners themselves, fewer than half have know what SLA’s are actually in the contract. They also cannot recall all of the specific details that the increasing numbers of the agreements contain. So, there is a lot of work that goes into developing these structures but there is no framework established on how to govern them in an automated way.
As a result, most SLA management is reactive. Periodic reviews between buyer and vendors are based on summary performance data from the prior period. Data from vendors is typically inconsistent and inaccurate. I was speaking with a sourcing executive at a large financial services company a couple of months ago, and she reported that half of the meeting time spent with vendors on performance was used just to agree on what an accurate view of the data was. This hardly aligns to the dynamic nature of business today.
New Paradigm on Thinking about SLA’s
Imagine the ability to manage SLA’s with each of your providers in real-time with one service integration framework. In a workshop we held in New York with a number of large buyers and providers late last year, they highlighted that this would not only move the service management model from reactive to proactive, but would also enable a more collaborative working model – moving away from the “us vs. them” paradigm. In one multi-sourced organization we’ve implemented this model in, it has completely eliminated after-hours escalation calls and dramatically reduced resolution times. With an active SLA capability you can manage all of the multi-sourcing relationships from one “pane of glass” and get accurate service information in real-time, such as:
- Overview of all your open cases per provider
- Cases trending towards SLA violation that you can proactively take action on
- Actual violations that require immediate attention
To be effective, this solution would need to be very easy to consume, showing only what really matters up front. Front-line managers don’t have time to browse hundreds of tickets when only looking for one affecting the SLA. This all sound promising but is it possible to achieve?
Transforming multi-sourcing with active SLA’s
We are pleased to announce the availability of Active SLA Management in the 7.0 release of Cisco ServiceGrid. With a highly innovative user experiences via a centralized dashboard and reporting capability for the connected multi-sourced ecosystem, you will gain real-time visibility & drill-down functionality for events trending toward or violating SLAs to enable a more proactive, end-to-end vendor management capability.
If you would like to know more, feel free to browse:
- My presentation @ OWS: Orchestrate a Multi-sourced Landscape: The Next Generation of Collaborative Support
- Outsourcing Institute Webinar: New models of service level and vendor management
Join the Conversation:
- Follow us on Twitter, Facebook and YouTube.
- Learn More from My Colleagues: Check out the blogs of Mala Anand, Mike Flannagan, Bob Eve and Nicola Villa to learn more.
- Annual State of the Industry Jagdish R. Dalal, IAOP
- Outsourcing 2015: Changing in a Good Way – Contributor: ISG Research, February 2015
I had the opportunity to attend Cisco’s annual Partner Summit last month and I am excited about the news announced at the summit as well as the valuable conversations I had with our partners. The reoccurring topics I heard included cloud, innovation, speed, scale and, most importantly, differentiation.
The partners I spoke with viewed exceptional service as a key enabler of future growth. As solutions get ever more complex, partners increasingly look to services as their key competitive differentiator.
Partners have a unique opportunity to leverage recent Cisco investments in software enabled services to enable differentiation. In discussions at Partner Summit, one question came up time and again:
“Customers are demanding more complex solutions, but they want a simpler support experience – how do we balance these seemingly competing objectives?”
Multi-vendor solutions are by their nature complex. Integrating support across these disparate components enables partners to create a simplified support experience – speeding resolution times and increasing transparency across the support process. Customers also look for integrated SLA’s, no matter how many parties might be involved in delivering support.
By connecting all service partners in the cloud, partners can deliver a unified support experience, opening new opportunities for partners to provide differentiated services. Better still, this “ecosystem” of connections in the cloud enables automation of IT service management and better exchange of support information between providers and customers for faster mean time to resolution for IT issues.
One partner at the forefront of this new paradigm is BORN Green Technologies of Switzerland. I caught up with Patrick Spreng from BORN at Partner Summit. He told me about BORN customers who had visibility into multi-vendor support processes they’ve never had before, using Cisco ServiceGrid. What had previously seemed an unmanageable mess created from a highly fragmented environment was brought together into a single support experience – with one overall SLA. On a daily basis, Patrick reported, it just made support easier.
Services will continue to grow as a major competitive differentiator for partners. Partners that embrace new models and innovate in this space will win new customers. Nowhere is this more important than in managing the growing complexity customers are facing every day.
Watch our interview with ATP Partner BORN Green Technologies to learn more about how it is leveraging the power of Cisco ServiceGrid: