IT Outsourcing Transformation Whitepaper

7/25/2019 IT Outsourcing Transformation Whitepaper

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IT Outsourcing TransformationDemand of the time


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Overview

IT Services have been an in-house function for most oforganizations across the globe a decade ago. With rapid growth innew technologies and expansion of customer base, organizations

were unable to adapt to changes relying solely on their in-house ITteams. This gave rise to external IT service providers andproliferation of multiple engagement models.

In-House IT Team Organizations were using in-house ITteams to manage the IT work.

Co-Sourcing Model - Organizations started using consultantsfrom the service providers to manage the work along with theIn-house IT team. Service providers consultants were managedby the IT manager.

Staff Augmentation (T&M) Model Organizations use ITservice providers to complement the in-house IT teams inexecution of projects and pricing model was based on the

effort put by the consultant.Fixed Price Model Fixed price model is similar to Staff

Augmentation model in terms of tasks being outsourced to theservice provider. Pricing model is different from Staff

Augmentation. In Fixed price model, cost of service ismeasured in terms of quantity of deliverables and overallprogram is managed by the organization.

Managed Services ModelIn Managed services engagementmodel, the service provider is responsible for end-to-endresponsibility to deliver a service which was being delivered ormanaged by the organizations in-house IT department. Pricingmodel is outcome based as compared to activity based in the

earlier models.

Figure 1: In-House IT Vs Co-Sourcing Vs Managed

Definition

A managed service is the practice of transferring day-to-daymanagement and operations responsibility to a third party serviceprovider, as a strategic method for improving effectiveness and

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IT Outsourcing Transformation - Demand of the time

2011, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by t he Author, all rights reserved.


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efficiency.While the organization that owns or has direct oversightof the entity or system being managed is referred to as the client orcustomer, the person or organization that accepts and provides themanaged service is regarded as the service provider.

Concept

The service managed and delivered by a service provider under acontracted service level agreement is generally termed as aManaged Service. This term is used by various providersdifferently based on the context of their business and the servicesthat they provide. The service provider takes complete managementresponsibility to deliver a service that was traditionally performed bythe internal staff or by the service providers in either T&M or Fixedprice model. Managed services are definitely not a one-size-fits-allconcept. They have to be customized based on the unique needs ofthe organization and the service providers portfolio of services.

In a managed services scenario the customer organizationcompensates the service provider for the services that it providesand not for the components that constitute the service. Thecustomer organization is not required to plan, design, manage, anddeliver the services in a managed services scenario, as all theseactivities that are related to service delivery and operationsmanagement are the responsibility of the service provider. While

working with an organization that has a highly matured managedservices setup the customer is required to only manage, monitor andevaluate the overall service provider performance.

Scope

The diagram shown below depicts the scope of the Managedservices Portfolio starting from mere Team augmentation to thelevel of complete outsourcing of all Assets (Hosting & IT),planning, designing through an SLA based end-to-end servicemanagement. The scope in Model-4 gets extended up to managingother service providers for a defined scope of work. It also includesdriving RFP and selecting the final service provider to provide theservice.

Figure 2: Levels of Outsourcing

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The Needs

There are several drivers for a managed services set up dependingon the organization, the industry it is operating in, theapplications/systems that it uses, service provider penetration, and

the IT industry outlook. They range from reducing delivery risk toleveraging the service providers capabilities for service delivery.CIOs are facing the challenges of

IT Managers spending time in micro management ofindividual projects

Managing financial pressure of high cost of operation andinadequate year-on-year improvement

Fierce competition

Handling all business and technology risk

CTO, SMEs and IT Managers spending the precious timein finding the ways of application modernization and lackof support from the service provider

Having roadblocks in adopting mission critical technologyand going for business transformation

Inadequate Value addition by the service providers.

Lack of transparency from the service provider.

Service Providers also face the problem of

Lack of Visibility

Lack of Ownership

Non involvement in planning activity and execution as perthe plan

No focus on the productivity improvement and

competency enhancement.Inadequate opportunity of moving up in value chain duringthe engagement.

These challenges are mainly because of the reasons illustratedbelow.Multi Vendor Scenario Customers are working with multipleservice providers and tracking each and every service provider is acumbersome task.

While working in Co-souring model, service provider lacks indemonstrating the -

Accountability Customer is accountable for any issue even ifservices are offered by the service providers.Capability enhancement Service Providers consultant sticks toa technology and the application without any capabilityenhancement in technology or business applications.Productivity Improvement Suppliers consultant does not workin the line of productivity improvement to deliver more for less.InnovationThere is a lack of innovation by the service providersconsultants when they dont get opportunity to define, execute,deliver and measure their performance.ScalabilityScalability becomes an issues when planning isdone

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by somebody and execution by somebody else. In case of In-houseIT team also, scalability is an issue to address.Visibility Service provider does not have the visibility of thecomplete landscape and it impacts the performance of serviceprovider.PartnershipService provider does not work in partnership modeto bring maturity into the business.

Outsourcing in Managed Services -Benefits

IT Industry has seen tremendous benefits by transforming theengagements into Managed Services. In a matured managed servicesengagement model, customer gets benefits not only in making abetter strategy for the coming years but also gets cost effective andquality services from the service provider in partnership mode. Fewkey benefits are -

Risk, Responsibility and Rewards sharing by the trustedpartners

Predictable costing

Innovative solution framework

SLA Based Delivery - Driving Efficiency through ServiceLevel Management

Customer FTEs are freed up to take-up other importantactivities

Clearly stated, measurable outcomes Accountability is builtinto the model so that roles and responsibilities are strictlydefined and ambiguity eliminated wherever possible with

Quantitative metrics and milestones.Consistent High Quality Delivery

Continuous improvement - Simple staff augmentation doesnot provide the incentive for process improvement. Themanaged outcome model, by comparison, encourages theprovider to exploit savings opportunities through sharedknowledge of best process practices, standardization, andapplication life-cycle improvements

Development of Reusable components

Access to Experts, Enterprise Tools and World-ClassMethodologies

Improved efficiency and productivity

Knowledge RetentionReduced Total Cost of Operations

Improved Customer Satisfaction

Transformation to Managed Services

Purpose

This document provides a methodology for transforming staffaugmentation model to managed services model. It contains detailed

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process for identifying and prioritizing the applications / projects /services for managed services model and then how to start themanaged services engagement. Prioritization is done based on the

weight assigned against numerous parameters. The methodologyexplains the following

Facilitates the service provider to develop and submit thebusiness case.

Helps the customer in defining the road map for transitioningto Managed Services Model.

How to define and establish Service Level Agreements fordifferent types of services.

Embracing Managed Services Model will benefit the customer interms of cost optimization, process maturity and improved quality.Customers get all the advantages of a matured outsourcing model inmanaged services mode.

Approach towards Managed ServicesModel

Managed Services Framework is typically designed with thefollowing key objectives-

Enable transition to Managed Services in a phased manner

Provide a standardized service model

Reduce client efforts on operational management

Extend benefits from economies of scale

Will provide IT Managers necessary job aids, guidelines,templates and checklists to enable transition into the

frameworkThe process any established service provider would like to followthe approach is represented below (while working with Customercounterparts)-

Prepare Application Services Catalog Prepare exhaustive list of services provided for each

application Categorize these services for each application in to

various application management services (AMS) category Prepare a volume baseline per application per service

Categorize Applications Applications are categorized (Platinum, Gold, Silver etc)

based on the business criticalityDocument As-Is Processes for each of the AMS Categories inthe following lines Incident Management , Problem Management, Change Management Service Request Management Configuration, Release and Availability Management

Collect Service Level Requirements based on businesscriticality

Define SLAs based on Service Level Requirements

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Based on the analysis, a roadmap is prepared to transition servicesfrom the existing setup to service providers Managed Servicesmodel.

Figure 3: Managed IT Operations Services

The Elements

There is a need for establishing strong practices both on thecustomer and service provider front to move into a managedservices setup. Moving into this setup calls for putting in place aframework that governs the organization and its service providersand certain operational practices that need to be followed by them.

Both these would include financial aspects, service level agreementsand a cataloguing model, among others. Generally the following arekey components of a managed services framework -

1. Service Cataloguing toolkit Contains the types of servicesoffered, detailed description of the services offered, customizations,scope, service windows, support specifications, DR specifications,requisition procedures and related dynamics.

2. Service Level Agreement FrameworkA framework that isaimed at managing the services being offered to the customer withtargets defined for performance, quality, rewards and penaltymechanisms, review and monitoring guidelines.

3. Pricing and costing modelThe financial framework used forthe provision of the services that includes the budgeting model,

costing and pricing mechanisms, chargeback mechanism and otheraccounting procedures.

4. Governance FrameworkThe Managed services governanceframework talks of the structure, policies, practices that arenecessary for the governance of the managed services setup. It alsoincludes establishment of forums/focus groups around specificareas with representation from key stakeholders from Business &IT.

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5. Strategic Uptake Planning Is aligned to the Customerstrategy as a whole and creates higher value for business.

6. Optimized Demand ManagementHelps in minimizing theexecution cycle time, standardizes the processes to ensure consistentcustomer experience.

7. Quality Deliverythrough standardized deliverables, engagementsuccess and best practices cascaded across the Managed Service.

8. Optimized Service supportwith better resource mobilization,higher offshore % and improved governance, scoping & reviews.

Additional elements could form a part of the managed servicesframework based on the Project requirements. However, there areother IT operations and management practices like supportprocesses, and documentation that any organization must establishin order to move into a managed services framework.

Strategy

The approach starts with the agreement on scope of servicestargeted in managed services model and Identification ofopportunities for managed services within the customersorganization.Prioritization of candidates for Managed Services:

Application prioritization is one of the important steps in movingthe projects from staff augmentation to Managed Services Model.Prioritization of projects, tasks and activities must be carried outusing a set of parameters.

Parameters to prioritize the candidates

Parameter DescriptionDesired outcome of the

Parameter for Fastertransformation

Business CriticalityWhere ever there is scope for huge financial,regulatory impacts, it is better to transition thoseservices at a later stage after detailed due diligence.

Low

Management SupportHaving senior managements commitment withsome business representation is critical.

High

Risks

A clear understanding of the risks and mitigationplans to reduce exposure to them is necessary. Riskareas to be considered are

Regulatory & legal risksServices that could impact the business interms of revenue

Risks that can cause instability in the ITorganization

Critical proprietary information and rights

Medium

Application StabilityNumber of changes to the application functionality/ architecture

High

ROIIdentification of the applications / services that canprovide high yield / ROI.

Medium

ProductivityIncrease in the productivity and the need forreduction in the cycle time

Low

Performanceimprovement potential

Services where there is a scope for performanceand quality improvement are best candidates fortransitioning into managed services.

Medium

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Parameter DescriptionDesired outcome of the

Parameter for Fastertransformation

Technical ExpertiseServices where there is skills shortage or lack oftechnological expertise in customer organization

Low

Documentation

Many applications and Infrastructure related workrequires documentation. This technical or non-technical documentation is necessary when a thirdparty is managing the delivery.

Medium

Process maturityServices where there is a level of process maturity

with clear roles and responsibilities, standardizedprocesses and procedures

High

OrganizationalReadiness

Having the capabilities within the clientorganization for managing service delivery in thenew setup.

High

Level of Authorization

For transitioning into a managed services model,one of the most critical element is having authorityfor the SPOC from customer side for the services,associated applications and infrastructure

High

Application StabilityThe candidate services / applications arereasonably stable.

High

ComplexityComplexity of the applications being transitionedinto managed services mode plays a major role onthe tenure of the transformation.

Low

The below table has parameters related to service providerscapabilities and these can be used by CIOs to evaluate a serviceprovider for any particular piece of work to be outsourced inmanaged services model.

Methodologies,practices, processes

Service providers with proven capabilities that can be leveragedfurther is extremely important, by not only taking over support butalso create value by leveraging their proprietary methodologies,practices and processes.

High

Ability to managedemand

The service provider should have a set up to meet the demand forManaged Service Model.

Medium

Domain &TechnicalCompetency

Strong expertise in domain and technology areas and the expertise inusing multiple technologies for a business objective.

High

MSM ExpertiseService Providers with proven expertise in delivering the projects

with MSMHigh

The above parameters will help in deriving the Managed ServiceIndex which will indicate how soon the service / application /project can be transformed to Managed Serviced Mode.Implementing this model across all services / applications / projectsshall derive the Managed Services Transition Roadmap.

Design

The main goals and objectives of Design are to:

Design services to meet agreed business outcomes

Design processes to support the service lifecycle

Identify and manage risks

Design secure and resilient IT infrastructures, environments,applications and data/information resources and capability

Design measurement methods and metrics

Produce and maintain plans, processes, policies, standardsand architecture.

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Frameworks and documents to support the design of qualityIT solutions

Develop skills and capability within IT

Contribute to the overall improvement in IT service quality.

This phase involves creating IT operations service catalogue,mapping business and IT processes through a contract managedservice business and operational solution. Outcome of this phase isa clearly defined business case for moving towards managedservices. This phase comprising of two sub phases viz. DueDiligence, SLA Framework and Business Case preparation.

Plan / Solution

Inputs gathered during the due diligence phase are considered fordefining plan for delivering the agreed services to customer. Thisplan can include the technology solutions, process solutions, a high

level schedule and effort to deliver predefined scope of services.This scope of work along with SLAs defined below will be the keyinputs for preparing the business case.

Service Level Agreements (SLAs) Lifecycle

This section explains the process steps involved in managing theService Level Agreements.

Define SLAsthis process covers the work of drafting and

refining SLAs, ensuring they meet the customer requirementsand gaining agreement from all the parties involved.

Implement the SLAonce all parties have agreed, the SLAis published, a start date determined and the affectedoperational teams notified.

Measure SLA performance and report results.

Refineassess the effectiveness of the service, locate wherethe gaps or changes are occurred and execute the SLAdefinition process to adjust the SLA.

Managed Services Business Case

Detailed Managed Services business case will be prepared andsubmitted to the customer. The proposal will focus on thebelow items to deliver the services. Scope of Work Assumptions and Dependencies Methodology and Approach Proposed Technical Solution for new projects Service Level Agreements ROI Time lines & Commercials

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Governance Model (Engagement Model, ProjectOrganization Structure, Project Management Processes,Project Progress Tracking & Communication, RiskManagement, Change Management, EscalationManagement)

Responsibility Matrix Case Studies

Finally, Signed Managed Services contract is an outcome ofService design phase

Transition and Service Delivery

The transition phase involves taking over the management andoperational responsibility of the given scope of work. This isexecuted by leveraging a program management framework and

working closely with the customer to assess, document and validatethe steps that are applicable to the defined scope.

Transition has below steps and that should be executed with adetailed checklist and toll gate review at regular intervals.

Due DiligenceTo understand the scope of work

Transition PlanningTo make the plan and schedule for theactual transition. It also defines the team structure and themode of training.

TransitionActual knowledge acquisition happens as per theagreed transition plan between different stakeholders.

Shadow Support The new service provider provides thesecondary support where as the incumbent service provider orinternal staff contributes for the primary support.

Reverse Shadow Support The new service providerprovides the primary support and the incumbent serviceprovider or internal staff provides help to the new serviceprovider in execution.

Steady StateThe new service provider takes the completecharge of service delivery.Optimization stage This is the continuous improvementactivity and the service provider shows the continuousproductivity improvement throughout the engagement.

Managed Services Framework

The key elements that frame the managed services model includeDelivery Framework, Governance Model, SLA framework andProcesses & Tools

Delivery Framework that aligns with the service scope andleverages on application development / support needs andskill requirements. The delivery model aims to provide theclient benefits from improved quality of service, economiesof scale and visibilit

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Governance Model ensures that engagement relateddecisions varying in criticality, urgency and financial impactsare appropriately addressed through a multi layeredgovernance mechanism operating at strategic, tactical andoperational levels

Service Level Agreements are defined for each of theservices identified and measured during the execution of theproject. SLAs are reviewed on a periodic basis and necessarychanges are incorporated in consultation with customer.

Process and Tools ensures that the delivery teams haveappropriate capabilities to provide the services defined. Anengagement specific policy and procedures manualssupported by service delivery plans is provided to internalstake holders to clearly define the approach for servicedelivery. A typical established service provider uses acombination of client provided request handling tools and3rd party tools to deliver services.

Program Management

The best of class Framework is implemented with the Program andProject Management methodologies at the organization level, andpractice specific engineering life cycle methodologies at thecustomer engagement level.

Figure 4: Program and Project Management

Every program sets out their vision and goals based on the

stakeholder expectations, Business Unit level KRAs and customer-specific business commitments. This Program Vision and Targetsgovern Project Initiation and Planning activities, which includeProject-level Measures and Goals setting. Similarly, the Project-levelperformance acts as a feedback loop in monitoring and stabilizingprogram execution

A Program is defined as a group of projects managed using theestablished Delivery Framework to deliver Software Products andServices, based on customer requirements, to leverage Benefits andControls, not available from managingthem individually.

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The Program Management methodology provides for processesrequired to plan, track and manage programs / customerengagements from a strategic perspective

Figure 5: Program and Project Management Framework

Project Management

Figure 6: Project Management - Delivering Right First Time

A Project is a value creating business executed in a defined timeperiod which enables delivery of services to the end consumers.Projects provide for further breaking of the scope of engagement /program (strategic business needs of the customer) in to manageable

work packets (Development, Maintenance, support, etc.) foreffective execution and delivery.

The phases of project management includeInitiation, Planning,Execution (Tracking & Monitoring, Delivery & Deployment) andClosure. The approach following for delivering project level outputright first time is depicted below:

Practice / engineering methodologies forSolution / Delivery

Software Engineering Life Cycle / practice specific methodologies

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should have been defined to direct the execution and delivery ofsolutions and services across disparate technologies. Detailedmethodologies and procedures must be available with any serviceproviders quality process. The relevant portion of the same will beshared with the customer during the engagement kick off.

Delivery Structure

Delivery team(s) collaborate with the representatives in thecustomer organization in the context of project delivery

Customer Management Team collaborates with the customerat an engagement level, in providing a comprehensive pictureof all delivery.

Delivery Support by Quality, Competency Solutions, HR, KMand others

Figure 7: Delivery Structure

Service provider should have a comprehensive governance structureand process in place. The key activities in planning for thegovernance structure and process include-

Establishing a review plan for critical milestones, deliverablesand periodic progress

Defining a detailed communication plan identify reportingrequirements and the various stakeholders who need to becommunicated. Determine the frequency of communicationand responsibility and,

Defining the escalation matrix for issue resolution

At program level, every program manager captures communicationand review plans pertaining to their programs in any ProgramManagement Portal. The escalation matrix applicable for issueresolution will also be updated in the portal. Program Managershave a provision to upload plans pertaining to documentmanagement and knowledge management as a part of the overallprogram planning phase. Effective program governance is acornerstone for successful change management and incident /exception management. The change register and an incident /exception register, is used to monitor changes / incidents /exceptions impacting the program. Program Managersleverages on

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the above features in the portal, in defining a comprehensivegovernance plan for their programs. This would facilitate theeffective monitoring of the governance mechanism during theprogram execution phase, and help program managers in steeringtheir programs towards success. The typical Governance model forfollowed in HCL is depicted below-

STEERINGCOMMITTEE

(Executive Management)

Governance Forum Participants Inputs Outputs

Steering CommitteeMeeting

(Quarterly)

Engagement Review

Meeting(Monthly)

Delivery Meeting(Weekly)

Customers Project

Sponsor

Customers Senior

Management

HCLs Head of Delivery

HCLs Engagement

Director

Customers Program

Manager

Customers Project

Manager

HCLs Program Manager

HCLs Account Manager

Customers Project

Manager

Customers SMEs

HCLs Project Manager

HCL Technical/Module/

Test/Project Leads

Project Highlights

Review Key Performance

Indicators

Escalated Issues

Progress Reports

Escalated Issues

Directions from Steering

Committee

Risk Analysis

Metrics

Project Status

Metrics

Directions From

Engagement Group

Current issues

Executive Commitments

Issue Resolutions

Strategic Directions

Issue Resolution

Project Plan realignment

Issue Escalation

Resource Requisition

Issue Escalation

Revised Plan

Metrics

Risks

DELIVERY GROUP(Project Management)

ENGAGEMENTGROUP

(RelationshipManagement)

MEETING SCHEDULE REPORTS SCHEDULE

Steering Committee

Engagement Committee

Delivery Meeting

Once every 3 Months

Once every Month

Once a week

REPORT SENT TOPREPARED BY

Weekly Status

ReportAll StakeholdersProject Manager

Monthly Progress

ReportSteering Committee

Project Manager &

Account Manager Figure 8: Governance Model

Indicative SLAs

In any managed services engagement, SLAs are aligned with onlytwo objectivesOne is on time delivery and the other is bug fixingtime for resolution.

In addition to the above SLAs, the following table contains thesample SLAs that can be followed for the engagement in theManaged Service Model. The actual SLAs will be discussed andmutually agreed upon commencement of the managed servicesmodel:Indicative SLAs for Production Support projects are given below.

SLAMeasurement

MatrixMetric Formula Expected

Severity 1 TicketResponse

Response TimeTime of TicketResponse minus Timeof Ticket Assignment

15 minutes



15 minutes



1 hour



2 hours

Severity 1 TicketResolution

Resolution TimeTime of TicketResolution minus Timeof Ticket Assignment

4 hours

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SLA

MeasurementMatrix

Metric Formula Expected



3 days

Severity 3 TicketResolution Resolution Time

Time of Ticket

Resolution minus Timeof Ticket Assignment

30 days



30 days

Post Mortem IncidentReport

Time

Time within which thePost Mortem report tobe sent to the customerfor Severity 1 & 2tickets

24 Hrs

Challenges in moving into ManagedServices

Like any other scenario where there is a substantial organizationalchange, transitioning into managed services also presents toughchallenges in the way of the transformation. Some of thesechallenges are process related, some technological and some relatedto organizational & behavioral changes. One of the most importantcriteria and challenge for the customer organization is to haveenough trust on the capabilities of the service provider. SinceManaged services requires less oversight and management burdenfor the customer organization, in spite ofclearing all odds, not having trust on the service providerorganization and its capabilities can undermine all efforts. Below is a

list of few prominent challenges that most organizations face in thistransformation.

Challenges & their mitigation while movinginto the Managed Services Mode:

Based on our past experience in converting the engagements intomanaged services mode, we have listed the possible issues thatmight develop. We have also given below the mitigation orresolution for each of these issues in order to move the engagementto managed services mode successfully.

S.No Challenge Resolution / Mitigation from the Service Provider

1 Dependency onthe customerSME

Service provider will go through the training / KT during the first 6months to become the subject matter experts for the identifiedskill/stream. This will help in minimizing the customer SME involvementon a staggered mode and eventually the service providers team willbecome self dependent.

2 GainingCustomerstakeholderconfidence formoving intoManagedServices Model

In order to get the confidence, the movement will be done in a staggeredmode - Partially managed and eventually into a fully managed servicesmode. This will also help in minimizing the risk for the business.

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S.No Challenge Resolution / Mitigation from the Service Provider

3 Lack oftransparencyfrom Serviceprovider

Upon conversion to partially managed / fully managed, service providersfollow the defined communication plan to share the project progress,issues/concerns, performance SLAs and metrics with customer. This willbe planned at multiple levels. Service providers onsite co-coordinator willbe interfacing between onsite, offshore and customer to minimize anygaps.

4 Lack ofAccountabilityfrom Serviceprovider

The SLA based engagement with performance incentives & credits toensure required accountability from the service provider.

5 Handlingarchitecturalchanges

Service provider team will be supported by the internal TechnicalArchitecture Group and competency groups. These groups provide thetechnical guidance and also perform technical & architectural reviews toensure that the deliverables meet the standards.

7 KnowledgeRetention

Service provider should have a dedicated Knowledge Management portaland framework for customer engagement. The framework enables theservice provider to capture, retrieve and re-use the documentedknowledge and tacit knowledge.

8 Lack ofengagement

oversight by thecustomer

Customer will continue to manage the engagement by way of thefollowing: - (a) Prioritization of projects (b) Approving milestones (c)

Estimation revalidation and approvals (d) SLA based performancemonitoring and provision of incentives & credits (e) Toll gate reviews andsignoffs for the milestone based deliverables.

9 Complaint withthe serviceprovidersSDLCprocesses

(a) Before migrating to the Managed Services Model, Service providerwould have worked with Customer for nearly 24 months time in projectmode. This is a good timeframe for any large application to get therequired Knowledge on the service providers SDLC process followed byCustomer.(b) In addition to this, before moving to the Managed services model, acharter will be prepared which describes the process to be adopted.Service provider should be open to follow the process prescribed by thecustomer, or service provider can suggest its own or a combination ofboth. In any case, the process will be mutually agreed and implemented.

10 Organizationalchangemanagement andpeoplecommunication

By moving into managed services model, Customer managers will be freedfrom the routine operational, technical and resource related matters. This

will enable them to have more bandwidth for more value added services aswell as taking up some of the high end work. This will allow requiredacceptance from the customer staff. It is also important to provide the

direction of the managed services model from the senior leaders of theorganization for better and faster implementation.

11 BusinessContinuity Plan

By outsourcing the work in managed services, customer has very l ittlecontrol in day to day operations. In this case, service provider needs tohave a disaster recovery plan to run the business as usual in case of anydisruption. This should be tested and audited in regular interval.

Managed Services Model HCL way ofTransformation and Sustenance

HCL proposes to leverage its proven MASCoT framework(Managed Application Services with Continuous Improvement to

Transformation) that incorporates experiences from previous,similar size engagements wherein HCL has brought value to thecustomer while over time exhibiting continuous improvements tocreate the target Operating model for any customer. This Model isdesigned to provide values to the customer with:

Robust Service Delivery Model delivering predictableservices

Mechanism to effectively measure HCL Performance

Control and flexibility

Reduced TCO

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budget can be used for transformation of application to meet thebusiness and market demands. It also brings improved customerdelight index.

References

http://en.wikipedia.org/wiki/Managed_services

http://www.cio-weblog.com

http://technologyoutsourcingblog.com

http://managedservicesblueprint.com

About the Author

Praveen Sinha is part of Mainframe Solution CoE team as ADMSconsultant and has 15 years of experience in various areas ofMainframe. In the past, he has worked in several large engagementsand converted Staff augmentation or Semi-Managed Servicesengagement to Managed Service Model successfully. He has alsocontributed in starting an engagement in managed services modelfor various Transformation, Development, Maintenance andSupport projects across various technologies.

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http://en.wikipedia.org/wiki/Managed_serviceshttp://en.wikipedia.org/wiki/Managed_serviceshttp://www.cio-weblog.com/http://www.cio-weblog.com/http://technologyoutsourcingblog.com/http://technologyoutsourcingblog.com/http://managedservicesblueprint.com/http://managedservicesblueprint.com/http://managedservicesblueprint.com/http://technologyoutsourcingblog.com/http://www.cio-weblog.com/http://en.wikipedia.org/wiki/Managed_services


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ABOUT HCL

HCL Technologies

HCL Technologies is a leading global IT services company, workingwith clients in the areas that impact and redefine the core of theirbusinesses. Since its inception into the global landscape after itsIPO in 1999, HCL focuses on transformational outsourcing,underlined by innovation and value creation, and offers anintegrated portfolio of services including software led IT solutions,remote infrastructure management, engineering and R&D servicesand BPO. HCL leverages its extensive global offshore infrastructureand network of offices in 31 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services,

Manufacturing, Consumer Services, Public Services and Healthcare.HCL takes pride in its philosophy of Employees First whichempowers our 72,267 transformers to create real value forcustomers. HCL Technologies, along with its subsidiaries, hadconsolidated revenues of US$ 3.1 billion (Rs. 14,101 crores), as on31stDecember 2010

About HCL Enterprise

HCL is a $5.7 billion leading global technology and IT enterprisecomprising two companies listed in India - HCL Technologies andHCL Infosystems. Founded in 1976, HCL is one of India's original

IT garage start-ups. A pioneer of modern computing, HCL is aglobal transformational enterprise today. Its range of offeringsincludes product engineering, custom & package applications, BPO,IT infrastructure services, IT hardware, systems integration, anddistribution of information and communications technology (ICT)products across a wide range of focused industry verticals. TheHCL team consists of over 79,000 professionals of diversenationalities, who operate from 31 countries including over 500points of presence in India. HCL has partnerships with severalleading Global 1000 firms, including leading IT and Technologyfirms. For more information, please visit www.hcl.com

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