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Transformation of Managed Services
By Shyam Narayan, Director, Head of Managed Services, Capgemini
IT Managed Services is an area that has seen substantial changes in the last few years. Operational budgets are becoming dearer year after year. Business does not want to spend money on this but can’t live without this. But there are disruptions in the market place which is transforming the ways in which managed services are delivered.
Organizations are changing their ways of working by institutionalizing Agile & Devops in everything they do. Availability of pervasive digital technology to support and enable cloud computing with built in AI and automation tool is fueling the change and enabling organizations to transform themselves.
Customers are seeking superior customer experience which is the numero uno source of competitive advantage for the Organizations. Hence the No. 1 priority for CXO’s is to deliver superior customer experience. The budget for Digital transformations has increased by 10-20 percent but for managed services it reduced by more than 50 percent. This is driving service providers to transform managed services.
System Integrators are re-inventing themselves in order to help customers with their biggest opportunity. They are investing in platform (this includes system, tools & processes), domain specific deep knowledge. Pervasive automation to provide specialized service. Using AI to provide insights into business outcome instead of just providing services.
Organizations are changing their ways of working by institutionalizing Agile & Devops in everything they do
The managed services team is moving towards redundancy. Self-service is passé. We are talking about Auto-service (Chat bots, Auto bots), Auto correction and auto healing applications & infrastructure components, AI based configuration and development based on data insights and RPA for business processing. L1 is being replaced by AI based Robots, L1.5 will be replaced by Self-healing robots. Health checks, release, deployment and testing will achieve near zero human intervention. RPA will drive efficiencies in business process processing. Infrastructure will be auto scalable, 100 percent available, secured and self-healing with 100 percent redundancy.
Operating Model of the managed services team within organizations are changing with lines blurring between business, IT, and SME’s. Also, Operations team are now embedded as integral part of the transformation team. Skills required for delivering in the new model is undergoing change and requires reskilling of the workforce. To support new operating model new commercial models are evolving and being adopted by organizations. Hence commercial models are undergoing change and new innovative models are becoming norm. There are various models example pay per use, transaction-based pricing, Platform as a service, Software as a Service etc. are being provided by Service Integrators.
Customer experience is the top priority of the organizations. CXO’s are implementing strategies to transform their managed services which will enable and help end customers deliver their value to their own customers by providing seamless experiences that go beyond infrastructure & application technologies to all-encompassing business solutions that improve customer experience.