A New Model for IT Managed Services

IT Service Delivery is common in today’s world and is much like it sounds – the delivery of an IT service to a customer. Done well, Service Delivery brings a business and IT together. The great advantage is that it allows a jurisdiction to focus on what they do best without having to find, train and retain top IT professionals.

Traditionally, organizations would issue contracts for a specific number of IT Staff therefore giving them the control of the staff and outcome. Many jurisdictions are now moving to a Performance-Based Contract (PBC) Model which drives supplier accountability for outcomes through service level agreements (SLAs) and/or cost reductions.  Being able to measure results of services is key to Service Delivery, too. Meaningful metrics can be used to drive continuous service improvement and ensure our customers receive the value they expect.

The key in developing a successful PBC is having clear definitions and expectations. Specifically, it should:

  • Clearly define the content of IT services
  • Clearly define the roles and responsibilities of customers (those who pay for the services), users (those who use the services), and service providers (those who provide the services).
  • Set expectations of service quality, availability, and timeliness

This is important because it performs a service the customer cannot do—and provides greater value. ITIL (formerly known as the Information Technology Infrastructure Library) is an IT service management framework that is widely used in the IT industry and helps us achieve those goals.  ITIL is structured to cover the full-service life cycle: service strategy, service design, service transition, service operation and continual service improvement.

Done right, the PBC model can lead to better performance through alignment of clear goals, expectations, reduction in cost and better relationship between the buyer and seller.