Managed service paradox

Abstract

In this paper we examine managed service in the information and communication technology (ICT) sector, characterized by the polarization between an infrastructure service that is growing in scale and increasingly becoming a commodity and customized or even one-of-a-kind projects. We refer to the approaches taken by three highly innovative advanced service companies, IBM, Ericsson, and Cable & Wireless, to package and deliver ICT service on a more industrialized basis. We identify the six-stage process that describes their journeys to date. We also describe some of the challenges they faced on that journey as well those currently facing them as they move to a higher degree of industrialization. To address these challenges, we propose a model with three axes: offering development, service delivery, and go to market. The model demonstrates how the increasing industrialization of managed service requires an approach integrating all three of these dimensions. We also show that strong governance is required to address the impacts of technological evolution, marketplace dynamics, and corporate culture.