Enterprise IT Outsourcing Throughout Asia-Pacific

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Essential/Proactive and Managed Business IT Services?

Availability vs Cost of Delivery


In a very simple sense, all IT service deliverables, be they a product or service, can be positioned on the below graph.

The closer one comes to wanting 100% availability (which is a theoretical impossibility) in any product or service set, the higher the cost becomes, until at the upper reaches of the graph, going from 99.5% to 99.7% availability for example, you begin dealing in very large sums of money, or loss of autonomy for very small incremental increases in availability.

The challenge for key stakeholders is to not only place their organisation as a whole on this scale but also to place individual parts of the IT infrastructure also.

IT Availability vs Cost Graph


On the graph we have also roughly plotted where the different market differentials are and we will cover the definitions of those below. We will define these as they apply for a standalone product and/or service set and also define as a fundamental way of treating your IT as an organisation.


 

AvailabilityA

 

Individual Product or Service

 

As a way of treating your business.

 

Service Level?

What does this mean for an individual product or service?

 

What does this mean about how we run our business IT?

As a generalisation, what do I typically look like?

Break Fix

You are happy to wait for the product or service to break and will then search for assistance to bring it back into production   You have a low reliance on IT, and/or are see no need to spend money on IT service. It is unlikely you have a cost for downtime. 0-5 Staff. Low reliance on IT availability. You have no specialised internal IT resource.

Essential

You understand that there is a cost associated with downtime in a particular product or service and although you will still wait for this to break before doing anything, you have set up relationships to expedite the time to resolution. You are not prepared to invest money to undertake proactive activity to ensure the services do not have downtime.   You have a low internal cost for downtime although you most likely haven't calculated this exactly. You are prepared to spend money to establish a relationship with an outsource provider however you do not see the need to invest money to keep your services running. 5-15 Staff. Low-Medium reliance on IT availability. You have no specialised internal IT resource.

Proactive

 

 









Managed

This particular service is important to your business and there are definable dollar losses incurred for every minute this service is unavailable. You are happy to invest to ensure that the service does not have downtime, however you also recognise it is likely some outages will still occur

This service is absolutely critical to your business. You likely do not have the skill in-house to specialise in managing this service however it is vital it is up. Your downtime costs are known and generally are expensive. You want to completely outsource this product or service and remain within your circle of competence. You understand that this may come with a higher pricepoint however this is directly linked to a higher % availability.
  You have defined internal costs for downtime in your IT infrastructure. You see benefit in investing in proactive activities to ensure services do not suffer downtime. 






You are a mature business. You have established proceeses and proceedures across most parts of your business. You also understand your core competencies and desire to not move out of these. Outsourcing parts of your business is a natural extension of this and this extends to your IT. You have a defined cost of downtime and this is usually high.
15-100 Staff- Medium-High reliance on IT availability. You will likely have some dedicated internal IT resource.





50-500 Staff. High reliance on IT. The business has many outsource relationships. You will likely have an internal IT team.