Assembling the Jigsaw – Service Integration and Management in a Multisourced IT Operating Model

Recent developments in utility-based IT contracts, standardized services and cloud computing are driving considerable savings out of IT budgets. ISG analyses of large global organizations have identified potential savings exceeding 40 percent. Additional benefits include the ability to address specialized needs of different business models and to integrate best-of-breed providers. However, to sustain these benefits, strong operational and commercial governance processes are essential. Indeed, the benefits achieved through leveraging a service provider’s standard service offerings can be rapidly undone without effective controls in place. In multisourced IT operating models, where technology services are provided by myriad teams or organizations, ensuring seamless delivery presents a challenge. One way to address this challenge is through contracting for a discrete Service Integration and Management (SIAM) function. An effective SIAM function enables organizations to take advantage of the flexibility and innovation of multisourcing and standard services while delivering integrated services to the business. This ISG white paper discusses the challenges and key success factors related to service integration and governance functions within multisourced IT operating models.

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