Managed Services

Rakeysh Ranjan Symbiosis Institute of Telecom Management

Agenda

•Introduction

•Different types of managed services

•Top managed services and trends

•Business benefits and losses

•Comparison with outsourcing

•Case Study

Traditional Telecom Operators: Need for Change

•Falling ARPUs •Increasing Competition•Ever High Spectrum Prices•Increasing MoU•Rapid pace of technology advancements•Increasing Convergence and Blended Services

MS: An alternate Business Models

•When it all started?•Outsourcing of core business functions•Can be broken into 3 categories:

NetworkHosted ServicesIT

•Strategic Partners: Planning, Deploying, Maintaining and Optimizing the network

Expectations from Right MS Provider:

• Single-sourced solution that provides clear accountability and a focus on achieving highest quality

• Well-planned and executed transition to next generation networks in order to realize your long term financial objectives

• Technology partnership that provides seamless migration planning

• Alignment of your next generation network with your business processes, cost structure, and planned growth

• World-class network operations outsourcing experience and expertise

• Global 24x7 presence and capabilities

• Strategic relationship focused on future innovation

Managed Services Models

Models of Managed Services

•Complete IT Operations Managed Services

•Complete Hosting and IT Operations Managed Services

•Complete Outsourced Managed Service

Managed service differentiators

exceptional technical support

trusted advisor releatioship

proactively manage customer risksand costs

fast turnaround and delivery

many vendor/partner relatioships

47.20%

38.90%

33.30%

27.50%

22.20%

44%

50%

28%

25.30%

33.90%

AVG

BIC

Top managed services offered

60.50%

94.70%

80.50%71.10%

100%

63.20%

36.80%

10.50%

30.50%30.80%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

response

response

Expectations of MNCs from MSPs

38%

20%

15%

13%

11%

offer more value for the price

deliver price quotes in a timely manner

provide price quotes that are easier to understand

improve billing accuracy

correct billing errors in a timely manner

Benefits of managed services

COST

• Reduction in CAPEX

• Optimization in OPEX

TECHNOLOGY

• Access to technical expertise & core competencies

• Improved network performance & efficiency

• Operational excellence

SERVICE

• Improved service flexibility, availability & security

• Integration of complexity

GROWTH

• Economies of scale

• Risk sharing & transfer

• Alignment of IT with business strategy

Benefits

Pitfalls from Managed Services

1• Complicated Relationship Management

2• Loss of flexibility & control over the network

3• Performance issues & spectrum scarcity

4

• Threat to information security in multivendor & multiclient ecosystem

5

• Too much dependency on a selected vendor-Vendor Lock

Outsourcing and Managed Services

To put it in simple terms, lets take the example of IT companies

Outsourcing –It is a lot like having your own in-house IT staff – except that they are not on your own payroll. Instead, you pay the IT Outsourcing company to provide a certain number of staff for a pre-determined number of hours per week or month. The benefit is that you have access to technical skills without having additional staff on your payroll – but the disadvantage is that you can end up paying more for that staff member than you would do if you hired your own in-house staff.

Managed Services - Instead of paying for the time of an IT employee, you are paying for your systems to be properly designed, maintained and supported – regardless of what the service provider has to do to achieve that. Ultimately, this is the end objective of any IT department.

ComparisonOutsourcing Managed Services

Outsourcing involves a long-term, contractual arrangement

A managed service is the practice of transferring day-to-day related management.

Outsourcing is the process of removing entire departments, including equipment, people and functionality.

A managed service provider is tasked with delivering one or more IT functions as a service.

It delivers a set service and is not flexible at all

A managed service provider offering services via a remote model can “standardize” processes using software and multi-tasking.

Outsourcing doesn’t allow for legitimate cost savings because the vendor can’t achieve economies of scale

What Makes Managed Services Better

• Managed Services help control costs.

•Managed Services help you deal with increasingly complex IT solutions.

•Managed Services give you a better, more dependable IT infrastructure.

•Managed Services offer more comprehensive and complete IT solutions.

•Managed Services help you maintain compliance.

MANAGED SERVICES FOR THE 4th GENERATION

• Decreasing time gap between upgrade and with supporting platforms from billing to Customer Relationship Management (CRM) and marketing applications .

• Databesity : Huge inflow and outflow of data.

• The approach of the mobile industry : Build the network, grow the customer base, manage costs, and increase service usage, and the net result is a sustainable profit margin.

• But the uncomfortable truth is that the old “linear” strategy where costs rise in line with service usage is outdated

• Challenge demands change

MANAGED SERVICES FOR THE 4th GENERATION

•Motorola has built its Managed Services around three key principles: Business model alignment, focusing operations around end-user and capabilities

•KBIs are agreed with the service provider prior to work commencing and are core commercial targets tightly aligned to business / revenue drivers, to measure performance

•Need to move from network centric Key Performance Indicators (KPI) to end-user centric metrics in the form of Key Quality Indicators (KQIs)

•Three particular Capabilities combine to turn projected project value into actual business benefit – Automation , Lean Digital Six Sigma , Governance

MANAGED SERVICES FOR THE 4th GENERATION

•A focus on the right areas: By making KBIs the focal point of Managed Services contracts.

•By devising KQIs it rapidly improves the customer experience to differentiate by performance in ever-more competitive markets

•Risk mitigation : Motorola’s new approach addresses both the issues of the risk of any new deployment, and the risk inherent in managed services that the contract itself might run into trouble

•Agility : The processes also ensure that constant reviews take place so that, as market conditions and business objectives change, the Managed Services contract realigns accordingly

•Ongoing value : Service providers benefit from considerable investment in the development of innovative automated technologies and Lean DSS methodologies to cost-efficiently optimize the network and customer experience.

Thank you