Demand for managed servicesis growing exponentially, driven by the need to upgrade infrastructure and implement artificial intelligence. However, many organisations are faced with the challenge of how to effectively implement managed services to gain not just technical support, but a viable partner who understands business objectives.
Just a decade ago, IT outsourcing was mainly associated with simple cost reduction and ‘firefighting’ in the helpdesk. Today, this model is receding into the background. According to analyses by consultancy CGI, the market is evolving towards advanced partnerships. Companies are no longer just looking for hands to work, but heads to think – experts who can help them through digital transformation, process automation and AI implementation .
However, for this collaboration to bear fruit rather than frustration, the supplier selection process needs to be thoughtful. Here are 5 key steps to move you from haphazard commissioning to strategic advantage.
1. Before you send in your enquiry: Inventory your own backyard
A fundamental mistake many companies make is trying to outsource problems that they themselves do not fully understand. Before even sitting down at the discussion table with potential suppliers, it is essential to look in the mirror. According to CGI experts, the key to success is a sound baseline assessment.
It is important to identify precisely which business processes are critical to the survival of the company and which are merely support functions. Equally important is a technology inventory – what we have, what is obsolete and where we lack internal competence.
Risk assessment should not be forgotten either. Issues such as data security, compliance or reliability of systems are the foundations on which trust is built. Such an internal ‘inventory’ provides a solid basis for future contracts. Without it, the contract will be riddled with holes and responsibilities will be unclear.
2. Define success: what do you really want?
“We want it to be cheaper and better” is a wish, not a strategy. For managed services to deliver real value, an organisation needs to know where it is going. Goals must be clearly defined and, more importantly, measurable.
Is the priority really to save operational costs? Or is the aim to free up internal IT resources so that they can focus on innovation and building competitive advantage? Often, the motivation is also to improve service quality or to gain access to technologies that would be too expensive to implement in-house.
By precisely defining the organisation’s weaknesses, specific success criteria (KPIs) can be formulated. The more precise the specification of expectations at this stage, the easier it will be to monitor the partner’s performance later on. The supplier needs to know what it will be held accountable for before signing a contract.
3 People, not just servers: A strategic model for adoption
Technology is not everything. Even state-of-the-art solutions provided by an external partner will not work if they clash with resistance from within the company. The decision on whether to outsource only selected areas or entire IT departments should be driven by the company’s wider strategy, not by chance.
CGI highlights a key, and often overlooked, aspect: the human factor. The successful implementation of managed services requires that the client’s employees are part of the change, not victims of it. In the transformation process, ‘internal multipliers’ – opinion leaders and change ambassadors who help teams understand and accept the new working model – play an invaluable role. Without the right cultural and mental preparation, innovation will only remain on paper.
4. clear rules of the game: A model of control and accountability
Outsourcing does not mean getting rid of responsibility – it means changing the way it is exercised. A transparent governance model is necessary for a smooth collaboration. It must be clear who makes key decisions, what the process for escalating problems looks like and how service performance is verified.
Companies can choose between different control models: from central control, which provides uniform standards across the organisation, to decentralised models that offer greater local flexibility, to hybrid solutions. Each has its advantages, but the most important thing is that the rules are set at the start. This will avoid a competence ‘grey area’ where no one feels responsible for mistakes.
5 Choose a partner: Look for a strategist, not just a contractor
The final decision should fall on a company that offers more than a standard catalogue of services. In the age of digital transformation, the supplier must be a strategic partner. This means that it should not only carry out outsourced technical tasks, but actively contribute to the business development of its customer.
The ideal partner, according to the approach suggested by CGI, combines industry knowledge with technological competence and operational flexibility. He or she must understand the specifics of the client’s market and offer scalable solutions that will grow with the company.
Location is also playing an increasingly important role. In times of geopolitical uncertainty and the growing importance of digital sovereignty, having a partner in the local market is becoming an asset. This ensures not only a better understanding of regulations and organisational culture, but also greater security in handling sensitive data.
Choosing a managed services provider is one of the most important strategic decisions IT leaders make today. Treating the process solely in purchasing terms is a mistake. Success depends on a thorough understanding of your own needs, preparing your organisation for change and finding a partner that can translate the language of technology into the language of business benefits.
