As the service marketplace continues to grow toward Outsourcing 3.0, both customers and suppliers are starting to understand the advantages of standardization and economy-of-scale. As such, customers are increasingly willing to alter their complicated and ineffective internal procedures and conditions and embrace the supplier’s standardized option at a lower price.
Paradoxically, while delivery of services is growing toward standardization and simplicity, service delivery processes have become more sophisticated and multi-layered. The advisory talent that used to charge $300 per hour while working for advisory and outsourcing companies have gone out independently. Now their sourcing expertise is accessible to IT departments at as much as half the price of what they used to charge.
Outsourcing advisory procurement
The economic slowdown has taken its toll on the IT services sector, and therefore, on advisory procurement that used to support corporate outsourcing endeavors in better days. Over the last two years, everyone—from the IT outsourcing specialists of the largest general company advisories (Accentures and KPMGs, for example) to the consulting offices of IT service providers (the HPs and IBMs) to the top outsourcing-special consultancies (the TPIs and Alsbridges)—has been hit with layoffs, consolidation and turbulence.
In this environment, customers get the chance to realize the change they are seeking. But while they understand where they would like to go, they generally don’t understand the best means to get there. And while they understand there may be more than one right solution to a company’s issue, they generally want help in finding the best solution, especially given the fast rate of change and innovation in the marketplace.
Advisors’ role in IT outsourcing marketplace
Information technology advisors work with customers to help incorporate information technology systems into their company. By showing clients the best way to use technology better, IT advisors also help customers enhance profit margins and get a higher yield on their technology investments. IT advisors function as a bridge between the customer’s technical team and staff members who use the technology.
An IT advisor must have a clear comprehension of the customer’s company and technology demands. This requires meeting with the customer before starting the job to learn just what they need in relation to services and results. Once the advisor understands the customer’s needs, they must formulate a policy to tackle those needs.
While creating the technical structure, the advisors work with the IT staff to make sure they understand the best way to keep the technology. The IT advisor might also give training demos to the staff so they understand the best way to get the complete advantage of the technological tools. The IT advisor makes regular reports to the client detailing execution procedures and also periodically reviews the technology and provides recommendations for system improvements.