Written by CloudTalent – published 8 October 2013

Switching IT Outsourcing Providers is Easier (and less costly) Than Ever….really?

CloudTalent’s CEO, Adrian Overall explores the issue……

Upon reading this article on CIO.com, we’d agree in the first instance.  Based on a number of similar findings achieved through some of our work with outsourced customers, we have identified that portability and new ways of measuring things are driving a different dynamic in the industry – which is making life easier, and cheaper, in many instances.

Legacy relationships built on an operational model that relies on one main construct are being challenged in an industry that is pushing towards utility, elasticity and flex. Units of measure are changing and IT Departments are looking to quantify service in new ways, so that they can better serve the needs of their clients.

It is no longer a case of taking simple, macro empirical measures and applying a ‘price x quantity’ model and coming up with a cost. The world is moving on and clients are looking for greater granularity and transparency as part of this movement.  Clients are also trying to understand why the monthly bill keeps rising when they are being told that IT is getting cheaper.

Alongside this change the use of anecdotal and subjective measures are coming to the forefront, with clients looking to ensure that customer perception, user-experience and ease of interaction be given the same priority as some of the more traditional measures.

‘Provisioning time’ is virtually the number one priority that we come across when talking to our clients. Provisioning a resource or capability seems burdened with amounts of friction and inertia that seem disproportionate to the actual task itself, and this typically causes more frustration than any other specific issue we encounter. This is a two-way street though, as we also see the challenge when highly evolved automated processes drive consumption behaviour to the other end of the spectrum – this can have a similar outcome by making a valuable resource readily available and easy to consume. Supply meets demand and suddenly the client finds the bill proportionally higher, but with a lot of satisfied customers!

So, our advice is to be careful, as with anything in this world, it is all about finding the sweet spot and ensuring that you have controls and governance in place to ensure you take advantage of new-world thinking, whilst not compromising your budget!

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