Success factors for the introduction of holistic IT provider management
IT Provider Management defines and coordinates the strategic selection, relationship building, and operational communication and interaction with (strategic) IT providers on functional, technical, and commercial topics. This includes all IT-related services in the areas of commodities (e.g., hardware, standard software), managed services, and consulting.
The focus here is on the needs-based and risk-oriented selection of providers. Strategic alliances and planning must always be aligned with the (business) needs of the organization. In addition, the development of suitable procurement strategies reduces both risks and complexity. Reviewing all bids and contracts and benchmarking vendor performance ensures transparency and compliance. Often, this information also serves as the basis for contract negotiations. Ideally, service quality is controlled and evaluated throughout the entire life cycle.
A holistic approach increases the efficiency and effectiveness of IT provider management. For example, early involvement, i.e., as early as the collection and evaluation of ideas, usually leads to a "best fit" provider portfolio. Similarly, early indications of disruptions in the service provider relationship allow problems and conflicts to be actively addressed in order to maintain and improve relationships with providers. But how does the implementation of holistic IT provider management succeed? In this blog post, we would like to present the most important success factors.
Transparent requirements definition
Reviewing the existing process landscape and recording the framework conditions is the first step for a successful implementation. In this context, relevant regulations and existing guidelines are identified. The current IT provider and contract landscape is also evaluated. A key result is agreed requirements for IT provider management, which serve as the basis for the conceptual design.
Tailor made concept
There is no "one-size-fits-all" model that can be applied universally to all companies. The underlying concept must always be adapted and tailored to the needs of the organization. In this context, interfaces to adjacent processes (e.g., procurement, demand management) must be identified and seamless integration into the overall process landscape must be ensured. A coordinated and uniform communication model coordinates the communication channels between providers and internal stakeholders. Likewise, guidelines for assessing service quality and designing service level agreements (SLAs) ensure both consistency and comparability. Corresponding process descriptions define workflows as well as collaboration requirements with adjacent process areas. For example, efficient negotiations and contract conclusions are ensured by close cooperation with the procurement department during the tendering process and IT provider management as a link to the legal department. The possibility of tool support for IT provider management should also be considered and evaluated. For a sustainable anchoring within the organization as well as an increase in acceptance, a review and approval by the management is recommended.
Piloted introduction
An initial determination of the maturity level is advisable to ensure transparency about the capacity requirements for the design and implementation of IT provider management and about the available resources. Subsequently, necessary and/or missing qualifications can be identified and capacity requirements derived. Internal capacity building may need to be supported (e.g., job descriptions/staff selection). In addition, work instructions at the operational level must be detailed and tools for day-to-day operations (e.g., checklists, templates, standards) must be developed. If suitable tool support for automating recurring tasks and for documentation has been identified, the introduction of new tools or the adaptation of existing tools must be considered and planned as part of the piloting. During piloting, selected providers and associated contracts (pilot scope) are migrated step-by-step into IT Provider Management. This approach allows the concept to be reviewed and lessons learned and areas for improvement to be derived. Once the concept has been successfully piloted or adapted on the basis of experience, all providers and contracts can be transferred to the responsibility of IT provider management.
Empowerment through communication & training
To ensure a smooth handover to line operations, internal employees must be trained in the new processes, working methods and tools. For example, the defined documentation standards must be presented to ensure a uniform basis for performance assessments and benchmarks (e.g., templates in SharePoint). Likewise, a central repository of provider-related documents (e.g., proposals, contracts, performance reviews) must be established and communicated to create transparency and avoid decentralization and redundancy. The designated responsible contact persons must be familiar with their role, their tasks, and the defined escalation paths in order to ensure efficient communication and control.
Conclusion
The introduction of holistic IT provider management can be a challenge, but with a transparent requirements definition, a tailored concept, a piloted, step-by-step introduction, and empowerment of internal employees with open communication and training, it can succeed. We are happy to support you in the introduction of a holistic IT provider management in order to manage your providers in a demand-driven and risk-oriented manner throughout their entire lifecycle.
Author: Henri Fild