March1993 Vol.IV,No.6 INPUT IEU-CSP Routeto: Research APublicationfror Programme—Europe The Open Support Challenge for Independent Computer Services Companies Thecomplementarydevelopmentsinopen TheIssuesforSystemsOperations systemsandoutsourcinghaveprofound implicationsforthetraditionalpatternofIT servicessupply.Computerservicescompanies Theprincipalquestionforsystemsoperations havealreadyseenashiftawayfromthe (SO)vendorsiswhethertorelatetheirservices segmentationbasedonservicessoldtotheIT to: function(suchasITconsulting,processing services,andsoftwarespecificationand • Particulartechnologyplatforms development).Thenewemphasisisupon • Particularmarketseciors servicesprovidedatthebusinesslevelsuchas • Particularservicefunctions systemsoperations,value-addednetworks,and systemsintegration.Theconceptofopen Thekeydifferencesbetweenthethree supportwillhastenandextendthisprocess. segmentationsarethefollowing: Theincreasingintensityofcompetitioninthe • FocusingupontechnologiesallowsSO servicesarea,coupledwithgreaterintegration companiestooffertotheircustomersalevel ofservices,meansthatrigorousassessmentof oftechnicalsophisticationthattheseus—ers howtostrengthencompetitivenessand maynotbeabletoaffordontheirown thus differentiationwillbeneededbyallthe thepossibilityofcompetitiveadvantage basedontechnologyexploitationarises. • Concentratinguponverticalmarketsectors Threeprincipalcategoriesofindependent allowsanSOcompanytoextenditssolutions computerservicescompaniesareconsu intospecificsoftwareandnetworking INPUT:systemsoperationsvendors, applications. consultancies,andprofessionalservices claormgpearnpileasy.erIstiisnrcelucdoegnaillsetdhrteheatarmeaansyofofactthievity • Saspeocpiearlaitsiionngsionrcenrettawionrskermvainceagfeunmcetnito,ns,alsluocwhs withintheirserviceportfolios. Thisbulletin vendorsanduserstoincreasethespreadof dealsonlywithvendorswhoseprimaryfocusis targetcustomersto inthefirstcategory. ©1993byINPUT.Reproductionprohibited. RESEARCHBULLETIN interestedinoutsourcingthoseparticular Culturally,theSOvendorshavelittledifficulty ities. intheconceptofopensupport.Theytendto relatestronglytotheircustomers(particularly Allthesystemsoperationsvendorswantto becausemuchoftheirstaffhasbeentakenover exploitthedevelopmentofopensystems,but fromtheirclients)andtheyareusedtoframing fordifferentreasons: resource-basedcontractsofextendedduration, • Thetechnologyspecialistscanoffer earmebraalrceiandgympurlotviipdliengsesruvipcpeosrtanatdtshkeilslsy.stTehmesy, mtoigmroavtieonsyssetrevmicseosntthoatoaplelnowpltahtefiorrcmussetaormleierrs andinsomecases,theapplicationlevel. thannormal. Extensiondownstreamintohardware(and software)maintenancelookseasierthan • Theindustryspecialistscandevelopopen pushingupwardsintohigh-levelconsulting.SO applicationsthatcanbesoldtotheir vendorsareoftenperceivedastechnicians customersirrespectiveoftheirprincipal ratherthanconsultants. Throughfocusingupon hardwareplatform. exemplaryknowledgeofthetechnologies; managingtechnicalcomplexityandproviding • Theservicespecialistscanofferskillsthat disparateserviceswithinasinglecontractual theircustomersthenhavenoneedtodevelop framework,theSOvendorshaverealpotential in-house. tothriveinanopensupportenvironment. ThechallengeinopensupportfortheSO vendorcomesindecidinghowbroada spectrumofservicestodevelop.MostSO companiesdonotprovideinfrastructure maintenance,preferringtosubcontractthis eithertotheequipmentsupplierortoathird- partymaintainer.Similarly,withthenotable exceptionofAndersenConsulting,theSO companiesarenottypicallyinvolvedin businessconsulting,andhaverelativelylittle opportunitytoinfluenceeithertheITdirection oftheircustomersortheproductstrategiesof theequipmentvendors. Thequestionthenbecomesoneofwhetherto goupstream(intothebusinessoperationsarea), togodownstream(towardsmasteringthe technologies),ortostayinthemiddleand respondtodemandforopensupportby concentratinguponservicemanagementrather thanthebroadertaskofservicedelivery. — — CustomerSer—viceTshPisr—poRleegasrseaea—mrccmohnet—BaucEltulrPeoetpitene.risTLIeiaflnn.yeeos(xu0ac7teh1raI)pvN4teP9fUq3ruToe9,ms3t31ai57o,fnuHslFillaolxrreSc(ste0roea7mer1mtc),eh6nLr2toe9snpod0oro1tnn7it9sWhsiIsuebXdula7lseFtpBia,nrtEornogfwlIiasNnhPdUtoT'pSurchasethereport IIMNDPIUITT 9 ____©199_3byI_NPUT._Reprod_uction_prohib_ited.