It appears that some organizations are starting to realise that the SIAM model adopted some years ago when it was the fad, is not all it was cracked up to be.
Organizations saw SIAM as the opportunity to reduce costs and offload the responsibilities of running a service(s) which in most cases included transfer of:
- Staff including their management, support, and payment
- Physical hardware including management, maintenance and support
- Software including management, maintenance, support and license agreements
- Data Centres and infrastructure including their management, maintenance and support
- Security both physical and cyber
- Novation of existing contracts
The outsourcer takes responsibility of delivering the services. All new or enhanced services are more often than not are delivered by the outsourcer. The outsourcer is driven to make or increase profits and drive up the share price. Over time the organisation begins to realise that it has limited control over the IT services and its associated costs.
Organizations, especially those in the public sector who are currently under extraordinary cost pressures, are beginning to realise that bringing the outsourced services back in house is potentially more cost effective and allows them to take greater control of their destiny.
Short-term costs may involve employing short-term experienced contractors to assist with the planning, transition and transformation activities, including the definition of the Target Operating Model (TOM). The TOM is extremely important and should ideally be defined before the organization begins insourcing services and apologies for stating the obvious but utilize ITIL best practices.
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