Most organizations are general striving to be more effective and efficient, failure to do so can often result in its eventual demise or takeover. Considering Service Sourcing, whether to outsource, invest or simply sell the Service Management capability probably appears on most boardroom agendas over a trading period.
At a strategic level consideration is made as to whether:
- The service(s) are being delivered as desired, at an acceptable cost, quality and business risk
- The optimal model for delivering the service is in place
- The best location to deliver the service(s) are employed
To evaluate that the above considerations are being met the following approach should be employed:
- Analyze the organization's internal service management competencies
- Compare the findings with industry benchmarks
- Assess the organization's ability to deliver strategic value
The following on from the approach above and the results obtained the following actions may be considered:
- Results: Low Service Management competencies, Low strategic value
- Action: Consider for outsourcing
- Results: High Service Management competencies, No strategic value
- Action: Business invest in service capabilities enabling strategic value to be provided, or consider selling service capability to a third party
- Results: Low Service Management competencies, provides strategic value
- Action: Consider for outsourcing providing services are maintained or improved upon
- Results: High Service Management competencies, provides strategic value
- Action: Continue internal investment, engage high-value providers to refine / enhance Service Management competencies
In the marketplace exist third party organizations who are knowledgeable in the Service Management field and are able to analyze an organizations competencies, provide comparisons against industry benchmarks and can potentially advise on the strategic value.