Johannesburg, 12 Nov 2009
Many of us underestimate the value that technology brings to our business - until it comes to a standstill. EOH Director Rob Godlonton, who heads up the company's Managed Services division, says there is no doubt that too few companies still undervalue the importance of their IT infrastructure or understand the costs associated with downtime.
It is easy to spot those that do, however. They are the ones still turning a healthy profit off their core operations because their IT “worries” are ticking over like clockwork in the hands of an expert service provider.
Godlonton says there is many a business today - big and small - which believes it has mastered the art of developing, maintaining, and operating its IT systems in-house. Many even build custom solutions to meet specific needs and hire dedicated teams of IT specialists to develop and operate their complex systems.
But, times have changed. While IT has progressed tremendously, it has also become more commoditised, which means your competitors probably have the same IT capabilities you once believed were unique to your operation. This has made IT less of a competitive differentiator. At the same time, because of its pervasiveness, IT has only increased in its significance to the ongoing operations of a business.
The commoditisation of IT has led to an increasing number of businesses entering into a managed services agreement. Such agreements bring the benefit of scale, methodologies, and processes, plus a pool of specialised talent, to deliver IT services at a lower cost and often with higher quality than an in-house IT team.
The need for managed services in South Africa is exacerbated by the IT skills shortage, says Godlonton. “Companies cannot attract and retain the skills required to deliver world-class services and are, therefore, increasingly recognising the value of managed services. This, combined with the proliferation of technology and the understanding of the benefits of technology at an executive level, has resulted in a drive to managed services as a real means of reducing risk and realising business objectives.
However, according to IDC research, companies aren't jumping into the managed services pool headfirst; potential adopters are looking for service providers that maximise the benefits and minimise the risks associated with adopting a managed service. IDC highlights the foremost concerns for businesses as: loss of control, downtime, lack of service provider agility, security, and lack of service provider knowledge of customers' business and industry.
This is why preparation in the move to managed services is paramount, says Godlonton. Organisations must have an understanding of what the managed services provider is going to do and, most importantly, what the objectives are in embarking on such an agreement.
“The paradox for many businesses today is that to gain better management of their IT environment, they often need to relinquish it to someone else. Companies need to move away from the belief that to control a department completely they have to have it, quite literally, under their roof. What they don't realise is that when they enter into a managed services agreement, they become the client of the managed services provider. This gives them the power to demand the best possible service and, in this way, increase their control of what remains their department. Managed services expand your resources, bringing a far wider range of business experience and insight to bear on your IT issues.
How to identify if you need IT managed services:
* A desire to concentrate solely on your core business
* Service delivery challenges from your IT department
* Lack of a professional IT service management
* Skills shortage
* Low IT staff morale
* Unrealistic expectations from users
* No clear understanding of the role of the IT department
* Old/legacy hardware
* Lack of an IT strategy aligned to your business
* IT is becoming more complex
* A move from product-centric IT support that is technology orientated to a business focused IT operation
* Provision of ongoing proactive and efficient management
By maximising your technology, customers benefit from:
* Enhanced productivity
* More predictable revenue streams
* No more skills retention issues
* Reduced downtime and disruptions
* A move from capital to operational expenditure
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