DigiTech Magazine - US Summer 2017 - Page 9

WHY WE’RE STILL STUCK • Implementing a Service Integration and architectural roles close or in-house, the Management (SIAM) model or towers strategic team deployed Infrastructure as Breaking out of this cycle is hard because delivery model: In attempts to diversify a Service, Google Apps for Work, mobile the world is constantly changing. Modern and specialize, many organizations CRM, Always-on VPN and sensible security IT operations require a huge amount have divided services among multiple capabilities. The transformation resulted of automation, planning, scripting and contractors. The intent of the SIAM in a 40 percent savings and a dramatic continuous change. Technology moves at model is to implement towers as pure improvement in employee satisfaction. a pace that challenges even organizations commodity elements that can be called that prioritize staff development to keep up. off at the discretion of the SIAM layer. Reskilling current or potential employees Unfortunately, this model often leads at the rate required is very difficult, to inefficiency, poor communication, especially when they spend most of their infighting and a lack of structure because The move toward continuous change time fighting fires. This stands in sharp companies operate under several does not make BPOs obsolete. Quite the contrast to the continuous integration and amorphous contracts with little oversight. contrary. A BPO company that pursues its deployment models that lead technology transformation today. OPPORTUNITIES FOR BPO COMPANIES • Outsourcing all services with a BPO: own internal transformation and change Companies with BPO contracts often can attract customers willing to pay a stagnate while their competitors premium for a higher quality of service. Some BPO providers have workforces accelerate in the rapidly changing As new technology and automation that can easily change or modernize. technology environment. To reduce solutions arise, BPOs should take Others have grown through acquisitions risk, organizations can collaborate these opportunities to develop new and or have inherited unions with complex with only those BPO companies that specialized services for clients. terms and conditions. Unless clients and have implemented their own internal BPO companies find ways to innovate and transformation and have assessed adapt, the industry is ripe for disruption or their operations, business models and replacement through insourcing. service models to offer the best long- THE NEXT STEPS term benefits to themselves and their IT should be “built to change,” not customers. “built to last,” as a default. Initiating a FINDING THE SOLUTION transformation may meet resistance. Like many other groups around the world, Leaders with cost-first models ingrained To stay afloat, organizations—both BPOs one government organization operated in their DNA will offer 100 reasons to not and internal IT teams—must seek out under the “refresh and then sweat as pursue change. Nevertheless, there is one solutions that support a flexible, constantly long as possible” model for 20 years. very good reason to go for it: The current improving model. The possibilities include: Employees hesitated to try anything new, model is not long for this world, and the • Building all IT services in-house: and leadership was scared to recommend same can be said of companies that don’t Businesses that work with internal tech any “unnecessary change.” This attitude evolve. This evolution—and the associated teams can benefit from knowing that the had left an office with 3,400 IT users using expenditures—should be seen as an department’s goals align with those of outdated technology, only updating after opportunity, not a barrier. BPO companies the larger organization. This model works a crisis had already occurred. In pursuit and other organizations alike will elevate best when teams are not functionally of a stronger, more proactive solution, their capabilities if they can look beyond siloed and projects can flow smoothly they replaced their BPO provider with an short-term crisis management and toward between departments. in-house IT team. The transformation long-term success. • Outsourcing development teams only: required a strong vision and positive Some companies optimize IT by bringing communications with both the incumbent on several development partners to feed company and the users. The process into a testing-deployment pipeline that was not simple, and it used a complex they own and manage internally. network of tools. While keeping core 1 Netflix Technology Blog, The Netflix Simian Army DIGITECH Magazine Summer 2017 9