You will need to apply CREAMS
to your IT sourcing pain
The
real-world development of cloud enabled services (IaaS, PaaS, SaaS) will result
in a tectonic shift in the IT sourcing landscape. All companies must re-assess
their IT sourcing strategies to better align with cloud services. As a result
of this re-assessment, the IT sourcing landscape will change markedly with many
of the larger companies altering their sourcing mix. These larger companies will apply CREAMS to
their sourcing portfolios. The acronym CREAMS stands for Cloud Realised and Enabled Augmented Managed Services.
What are the forces driving this shift?
The main force driving this shift is the monistic focus on
financial performance. In 2012, companies will be exposed to significant
top-line revenue growth pressure. As a direct result, they will look internally
in an attempt to significantly reduce costs to protect margins. One major area
of cost for all companies is IT. This is a dance danced in the past two
decades.
Good companies will react sensibly to this cost reduction
pressure, whilst poor performing companies will tend to bring out the same dance
moves applied to classic hits like; “Take 30% of cost out!” and, “Cut your team
by half!” This time around, however, the dance will have one significant
difference. That difference is that the elements of the IT sourcing pricing
model have changed materially. Now, companies have the option to apply CREAMS.
This option did not exist 12 months ago.
Companies have the choice to materially alter the mix of
their sourcing strategy and attain improved customer service and satisfaction
at significantly lower cost. (The holy grail of IT sourcing.) This is not
simply a matter of doing the same things as last time. CREAMS require companies
to deploy new hybrid sourcing models for their IT Services. I provide a
detailed example and business case in my booklet, ‘AMSTM - The next stage in the evolution of
IT outsourcing’. Rather than simply repeating previous behaviour in a
climate of cost pressure, that is, outsource more and get the service providers
to dance to a reduced revenue stream, successful companies will deploy a
different sourcing strategy - Augmented Managed ServicesTM (AMSTM).
Which IT Sourcing CREAMS are best for me? Like all creams
the answer will depend upon your company’s industry and size. Smaller companies will have the opportunity
to apply some CREAMS, but the larger companies must apply CREAMS to maintain
their competitive advantage.
Put a smile on your face as well as your customers’ with the
right cream. As always make sure you read the directions and understand the
challenges that the CREAMS present. I detail these challenges in my booklet.
Is your company ready for the new IT sourcing CREAMS? If so download my booklet from Smashwords.
For more
information, contact Ernie Zibert at ernie.zibert@gmail.com
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