Managed Services

What is managed services?

Managed Services takes place when an organization transfers the ownership of a business process to a supplier. The key to this definition is the aspect of transfer of control.

Sometimes known as Facility Management or outsourcing, managed services is a strategy by which an organization contracts out major functions to specialised and effective service providers, who become valued business partners.

Why do companies outsource?

  • Reduce and control operating cost
  • Improve host company focus
  • Gain access to world-class capabilities
  • Free international resources for other purposes
  • Function is time-consuming to manage or is out of control
  • Insufficient resources are available internally
  • Share risks of partner company

In the early days cost or headcount reduction were the most common reasons to outsource. In today’s world the drivers are often more strategic, and focus on carrying out core value-added activities in-house where an organisation can best utilise its own core competencies.

In MANAGED SERVICES the buyer does not instruct the supplier how to perform its task but, instead, focuses on communicating what results it wants to buy; it leaves the process of accomplishing those results to the supplier.

Programme Initiation

At the start of the outsourcing programme, there is a variety of ideas and opinions about the purpose and scope of the programme, what the final result of the programme will be, and how the programme will be carried out.

Programme Initiation = Ideas + Intentions = Draft Contract

Service Implementation

Service Implementation covers the activities required to take these ideas & intentions and develop them into a formal, planned outsourcing programme and to make the transition to a full outsourced service.

List of activities:

  1. Defining the transition project
  2. Transferring staff
  3. Defining the SLA
  4. Defining the service reporting
  5. Implementing and handover of the service
  6. Implementing Service Management procedures

Project phase = on time + on budget + quality levels