IT Economics - Services Model

There are often three key imperatives in modern technology organisations that are driving the need for change. First, there are the business imperatives to increase flexibility, lower unit costs and deliver business change quicker and cheaper. Second, the IT imperatives to accelerate cost efficiency of IT operations while factoring ongoing volume growth and delivering significant structural changes (BPO, replatforming, ITO etc). Third, there are the external industry factors with system integrators aligning with software vendors and developing deep capability in certain domains and IT suppliers out investing internal IT departments in capability development. These challenges are making internal IT units ask three questions:

1. How to we deliver the next step change in cost profile and flexibility?
2. What capabilities should we keep in-house given the rise of vendor capability?
3. How do we define our offer of services to support the business given 1 & 2?

One approach that has been successful at meeting these challenges is the ‘services model’ technology organisation. A services model is a way of organising the technology shop “based on what the business understands, values and will pay for”. In practice this often means structuring the technology shop with many of the attributes of a commercial organisation – e.g. determining an appropriate services catalogue and charging on a commercial type basis. In extreme cases this even entails selling technology services to external entities.

We have developed a simple organisational model to enable clients to think through the design requirements for this new kind of technology operation

Download: IT Economics - Services Model Discussion. For more information, please contact us via This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Newsletter Subscriber: