IT Managed Services - when and why?

IT Managed and Support Services - is the practice of transferring day-to-day related IT management responsibility as a strategic method for improved operations and focus on core business. Typically, the customer remains accountable for the functionality and performance of the IT managed service and does not relinquish the overall management responsibility to the service provider (like PicNet Pty Ltd).

In my view, a company needs to continuously ask itself the question:

“Is this activity or resource needed or capability needed? Is it part of my core business or is it something that someone else can do better, faster, cheaper or more effective (because it is their core business)?

If the answer is that it is someone’s core business then it is a no brainer and the best option is to get that organisation to bring in and manage the capabilities required to achieve my outcome.

A managed capability (or a managed service) is the rental of a managed capability that will conduce to an outcome i.e. you pay for a result not for who does it or how. This way, you continue to focus on your core business and someone else’s deliver for you the result of your non core business.

Most managers really struggle with the concept…. They think they lose control and still want to understand how and who does deliver the service. Most progressive managers, focus on the agreement, i.e. what is needed, when and for how much… and very importantly, what do we do if things go wrong.

Some reference material:

Wikipedia Ian Marriott, Gartner: Outsourcing and IT Services (Video) Dell Managed Services (Video)