Like any of a company’s resources, computers and software have a life cycle that
must be managed. In the IT arena, that life cycle can be broken into several discrete
steps: product acquisition, configuration of
the computer for the user’s special needs,
deploying the unit to the user’s workstation,
supporting the computer through its active
life cycle and disposing of the product at the
end of its useful existence.
Most companies deal with each step of the
cycle as if each is a separate, compartmentalized event. However, Barry W. Savage, vice
president of strategic sales with Pomeroy IT
Solutions, Inc., says there is solid value in
managing the life cycle as a unified process,
taking a holistic view of management.
Smart Business talked to Savage about
what he calls “integrated outsourcing” or
“computer life cycle services.”
How far should this integration go?
When you step back and view a computer’s entire life cycle as a single event, and
tie all of those separate steps together. This
process will enable additional savings in
the process. A good outsourcing partner
provides support for each step in the management of all of a client’s technology
assets throughout the life cycle.
In a world where this life cycle is conceptually integrated, strategic sourcing, configuration, deployment, ongoing support and
disposal create leverage points that allow a
single authorized outsourcer to support
this entire life cycle. This linkage allows
savings by eliminating internal and external costs that show up when a customer
supports systems in silos.
Thus, the elimination of those silos
should extend to the entire life cycle. This
view allows IT shops to gain savings and
efficiencies by reducing support personnel,
leveraging buying power of your outsourcer, and recouping dollars on the sale
of your old equipment.
What are some other places where a client
gains efficiency?
Right from the start, a good outsourcing
partner creates a competitive environment that allows sourcing equipment at a better
price. A client can typically save 2 to 4 percent there. Those savings continue through
the computer’s entire life cycle. Your outsourcer can also leverage costs of configuring your assets by doing the work with lower
cost resources, saving another 2 to 4 percent.
The other interesting concept is that if
you use an outsourcer who can leverage
break fix and help desk resources, the savings can be as high as 20 to 30 percent versus doing this support internally. Then, at
end of life, the owner has a record of that
unit’s life. Rather than dumping or recycling the computer, it is possible to resell it
and regain some of its value.
Through its business networking links, a
good outsourcing partner will have many
more resale contacts than the typical manufacturer or service provider. That means better return at the end of life for the seller and,
perhaps, a bargain for the buyer.
How about specific areas like integration and
distribution?
Good outsourcing partners will have a
guaranteed order turnaround and delivery
program. Since they do volume shipping with
several major carriers, they will pass along
the value of lower freight costs. They will also have Certified Stock orders placed with all
the big-name vendors, such as HP, IBM, Dell,
Cisco, Nortel, Microsoft and Symantec. An
outsourcing partner can stock product in its
safety inventory — in effect, acting as the
customer’s warehouse without the customer
having to manage the inventory or pay the
square-foot cost, which is considerable in any
downtown office.
Should a company expect a dedicated team
to work its IT all the time?
It really depends on what is needed to solve
your business problem. ROI is also a consideration. For some customers, a dedicated
team is the best solution. Others can take
advantage of lowered costs through a shared
resource model. It goes back to what is the
best fit for you.
How do you get the service you need?
Service Level Agreements (SLAs) are guarantees of response times for various situations, which helps set and manage expectations for both the client and the provider.
The SLAs have to be tied to the client’s business objectives because they drive the
specifics of the SLAs. If it is a key business
function, then it might be reasonable to call
for 24-7 help desk service with a four-hour, or
even one-hour, fix time. But that will be
expensive. Other business functions may
only require a 12-hour fix time. Make your
SLAs appropriate and reasonable for your
business. Specify critical functions and have
separate SLAs for them.
What sort of dollar savings should I expect?
Assuming that you execute a complete life
cycle solution, I would expect anywhere
from 15 to 50 percent of your current costs
could be realized. Again, you might save 2
percent on purchase of equipment, but if you
incorporate all of the life cycle into a complete solution outsource you can achieve 15
to 50 percent cost savings.
BARRY W. SAVAGE is vice president of strategic sales at
Pomeroy IT Solutions, Inc. Reach him at (512) 738-6074 or
[email protected].