Evaluating Managed Services  - Benchmarks and Case Studies   Presented by: Dave Cunningham, Baker Robbins & Company [email...
Objectives <ul><li>Establish a practical definition of managed services  </li></ul><ul><li>Discuss case studies from the p...
Today’s Agenda <ul><li>Background </li></ul><ul><li>Market Status </li></ul><ul><li>Case Studies </li></ul><ul><ul><li>Cas...
Defining IT Managed Services <ul><li>“ Transfer of day-to-day management of one or more IT infrastructure environments or ...
Defining Managed Services <ul><li>Managed services involve: </li></ul><ul><ul><li>Defined services </li></ul></ul><ul><ul>...
Defining Managed Services
Most Common and Growing Services <ul><li>WAN </li></ul><ul><li>Disaster Recovery </li></ul><ul><li>Net Hosting </li></ul><...
Influences on Firms <ul><li>Pressure for higher-level service without higher costs </li></ul><ul><li>“ One firm”, multi-of...
Gartner Group on the CIO <ul><li>The New CIO Leader's IS organization must be leaner and more focused on business results ...
Market Status: Overview <ul><li>Management is more comfortable with internal,  on-site services </li></ul><ul><li>IT manag...
Market Status: Vendors <ul><li>IT operations, support and/or facilities:  </li></ul><ul><ul><li>Intelliteach - Office Tige...
Example Performance Indicators <ul><li>Service Levels (objective) </li></ul><ul><li>System availability: 99.97+% </li></ul...
Example Performance Indicators <ul><li>Key Performance Indicators (subjective) </li></ul><ul><li>User survey results </li>...
Instigators of Managed Services <ul><li>Managed services are usually not considered  in a static environment. </li></ul><u...
Case Studies
Case Study One:     Smaller Firm, Bigger Ambitions <ul><li>Profiles </li></ul><ul><ul><li>Firms 50-250 lawyers </li></ul><...
<ul><li>Services </li></ul><ul><ul><li>IT operations, upgrades and fault tolerance </li></ul></ul><ul><ul><li>Includes hos...
Case Study One:     Smaller Firm, Bigger Ambitions Yes Ad-Hoc Upgraded, consistent systems Immediate None Third Level Supp...
Case Study One:   Smaller Firm, Bigger Ambitions <ul><li>Benefits </li></ul><ul><ul><li>Less time to ramp up to improved l...
Case Study Two:     Big Firm, Practice Ambitions <ul><li>Profiles </li></ul><ul><ul><li>400-2400 attorneys </li></ul></ul>...
Case Study Two:     Big Firm, Practice Ambitions <ul><li>Services </li></ul><ul><ul><li>Facilities and WAN </li></ul></ul>...
Case Study Two :    Big Firm, Practice Ambitions <ul><li>Value </li></ul><ul><ul><li>Costs comparable for NY-based interna...
Case Study Three:     Litigation Powerhouse <ul><li>Profiles </li></ul><ul><ul><li>Large or specialty firms with significa...
Case Study Three:     Litigation Powerhouse <ul><li>Objectives </li></ul><ul><ul><li>Handle massive storage growth </li></...
Case Study Three :    Litigation Powerhouse <ul><li>Issues </li></ul><ul><ul><li>- Costs and chargeback - Local printing <...
Case Study Four:  Business Process Outsourcing <ul><li>Profiles </li></ul><ul><ul><li>Focus on larger firms for now:  (top...
Case Study Four:  Business Process Outsourcing <ul><li>Services </li></ul><ul><ul><li>Incoming Correspondence Management <...
Case Study Four:  Business Process Outsourcing <ul><li>Issues </li></ul><ul><ul><li>Internal </li></ul></ul><ul><ul><ul><l...
Case Study Five:     IT Internal Scorecard <ul><li>Profiles </li></ul><ul><ul><li>Primarily medium and large firms prepari...
 
 
Case Study Five:     IT Internal Scorecard <ul><li>Services </li></ul><ul><ul><li>Joint effort to evaluate IT processes, s...
Points to Take Away
Your Role <ul><li>Managed Service Preparedness </li></ul><ul><ul><li>Determine how IT best adds value </li></ul></ul><ul><...
Sourcing Strategy <ul><li>Firms should know their own services, service levels, costs and risks even if not considering ma...
Discussion and Questions
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Ilta 2005 - Evaluating Managed Services - Benchmarks and Case Studies by Dave Cunningham - Aug 2005

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  • 7 TB x 60% for 5 years = 73 TB Some firms already have 20-30 TB Some firms report 200% growth
  • Ilta 2005 - Evaluating Managed Services - Benchmarks and Case Studies by Dave Cunningham - Aug 2005

    1. 1. Evaluating Managed Services - Benchmarks and Case Studies Presented by: Dave Cunningham, Baker Robbins & Company [email_address] August 24, 2005
    2. 2. Objectives <ul><li>Establish a practical definition of managed services </li></ul><ul><li>Discuss case studies from the past year, some who decided to use managed services and some who did not </li></ul><ul><li>Help you understand how to determine if managed services are appropriate for you and your firm </li></ul>
    3. 3. Today’s Agenda <ul><li>Background </li></ul><ul><li>Market Status </li></ul><ul><li>Case Studies </li></ul><ul><ul><li>Case Study #1: Small Firm with Big Ambitions </li></ul></ul><ul><ul><li>Case Study #2: Big Firm IT with Practice Ambitions </li></ul></ul><ul><ul><li>Case Study #3: Litigation Powerhouse </li></ul></ul><ul><ul><li>Case Study #4: Business Process Outsourcing </li></ul></ul><ul><ul><li>Case Study #5: IT Scorecard </li></ul></ul><ul><li>Points to Take Away </li></ul>
    4. 4. Defining IT Managed Services <ul><li>“ Transfer of day-to-day management of one or more IT infrastructure environments or functions to an external service provider.” Butler Group </li></ul><ul><li>While outsourcing is seen as all or nothing, “managed services” refers to discrete services or sets of services handled by an external resource to allow a company to focus on its core competencies. </li></ul>
    5. 5. Defining Managed Services <ul><li>Managed services involve: </li></ul><ul><ul><li>Defined services </li></ul></ul><ul><ul><li>Service level agreements </li></ul></ul><ul><ul><li>Performance measures (objective and subjective) </li></ul></ul><ul><ul><li>Calendar or milestone timeframe (Term) </li></ul></ul><ul><ul><li>Legal terms and conditions </li></ul></ul>
    6. 6. Defining Managed Services
    7. 7. Most Common and Growing Services <ul><li>WAN </li></ul><ul><li>Disaster Recovery </li></ul><ul><li>Net Hosting </li></ul><ul><li>Help Desk </li></ul><ul><li>Data Center and IT Operations </li></ul><ul><li>Application-Specific Hosting or Recovery </li></ul>
    8. 8. Influences on Firms <ul><li>Pressure for higher-level service without higher costs </li></ul><ul><li>“ One firm”, multi-office, international support needs </li></ul><ul><li>Technology better suited for centralization, consolidation </li></ul><ul><li>More IT involvement in the practices </li></ul><ul><li>Litigation storage explosion </li></ul><ul><li>Challenge in attracting and retaining specialized IT talent </li></ul>
    9. 9. Gartner Group on the CIO <ul><li>The New CIO Leader's IS organization must be leaner and more focused on business results by appropriately using strategic sourcing of IT services, by adopting process based working, and by using all the financial resources available to it. </li></ul>
    10. 10. Market Status: Overview <ul><li>Management is more comfortable with internal, on-site services </li></ul><ul><li>IT management can see outsourcing as a threat </li></ul><ul><li>Few services are outsourced to save money </li></ul><ul><li>Some firms are using service levels and ‘cost of services’ information to deliver services better internally </li></ul><ul><li>Market is immature; at a slow turning point </li></ul><ul><ul><li>Firms are not experienced in engaging managed service suppliers </li></ul></ul><ul><ul><li>Suppliers historically provided poorly fit bids </li></ul></ul><ul><ul><li>Vendors are more focused on specialty services </li></ul></ul><ul><ul><li>Wide disparity in vendor services and costs </li></ul></ul>
    11. 11. Market Status: Vendors <ul><li>IT operations, support and/or facilities: </li></ul><ul><ul><li>Intelliteach - Office Tiger / Hildebrandt </li></ul></ul><ul><ul><li>LexisNexis - Savvis </li></ul></ul><ul><ul><li>Markley Group - SunGard </li></ul></ul><ul><ul><li>MindShift (Aspire/Union Square) - Thomson </li></ul></ul><ul><ul><li>Network Alternatives </li></ul></ul><ul><li>Niche players </li></ul><ul><ul><li>Lex Solution, Steelpoint, Ringtail, CaseCentral, etc. </li></ul></ul><ul><ul><li>NetDocuments, Hubbard One, MessageOne </li></ul></ul><ul><li>Business Process Outsourcing: </li></ul><ul><ul><li>Williams Lea (Bowne), Perot Systems, IBM, Deloitte </li></ul></ul>
    12. 12. Example Performance Indicators <ul><li>Service Levels (objective) </li></ul><ul><li>System availability: 99.97+% </li></ul><ul><li>Help desk: 20 second response for phone calls; 85% first call resolution </li></ul><ul><li>Guaranteed problem resolution times ( e.g., 2 hours for Severity 1 systems) </li></ul><ul><li>24x7x365 operations (optional off-site, centralized operations) </li></ul>
    13. 13. Example Performance Indicators <ul><li>Key Performance Indicators (subjective) </li></ul><ul><li>User survey results </li></ul><ul><li>Management satisfaction </li></ul><ul><li>Adaptability </li></ul><ul><li>Collaboration with internal staff or other suppliers </li></ul><ul><li>Quality of information exchange </li></ul><ul><li>Service improvement programs </li></ul>
    14. 14. Instigators of Managed Services <ul><li>Managed services are usually not considered in a static environment. </li></ul><ul><ul><li>- Firm management dissatisfaction </li></ul></ul><ul><ul><li>- IT failure </li></ul></ul><ul><ul><li>- Concern over IT costs </li></ul></ul><ul><ul><li>- Management changes </li></ul></ul><ul><ul><li>- IT strategic planning </li></ul></ul><ul><ul><li>- IT project planning </li></ul></ul><ul><ul><li>- Merger considerations </li></ul></ul><ul><ul><li>- Office or data center move </li></ul></ul><ul><ul><li>- Disaster preparedness </li></ul></ul><ul><ul><li>planning </li></ul></ul>Negative Influencers Positive Influencers
    15. 15. Case Studies
    16. 16. Case Study One: Smaller Firm, Bigger Ambitions <ul><li>Profiles </li></ul><ul><ul><li>Firms 50-250 lawyers </li></ul></ul><ul><ul><li>2-8 offices </li></ul></ul><ul><li>Objectives </li></ul><ul><ul><li>Large firm IT capabilities </li></ul></ul><ul><ul><li>Growth on tap </li></ul></ul><ul><ul><li>Consistency across offices </li></ul></ul><ul><ul><li>Make up for lack of IT availability </li></ul></ul>
    17. 17. <ul><li>Services </li></ul><ul><ul><li>IT operations, upgrades and fault tolerance </li></ul></ul><ul><ul><li>Includes hosting of accounting and telephone </li></ul></ul><ul><ul><li>Help desk (except desk-side support) </li></ul></ul><ul><ul><li>IT staff development </li></ul></ul><ul><li>Issues </li></ul><ul><ul><li>Limited number of capable vendors </li></ul></ul><ul><ul><li>Separate help desk </li></ul></ul><ul><ul><li>Vendor personalities were important </li></ul></ul><ul><ul><li>Firm’s role in transition </li></ul></ul>Case Study One: Smaller Firm, Bigger Ambitions
    18. 18. Case Study One: Smaller Firm, Bigger Ambitions Yes Ad-Hoc Upgraded, consistent systems Immediate None Third Level Support Yes None Centralized, professional facilities Immediate Ad-Hoc Help Desk After Before Service Features $4000 / user $2200 / user Approximate Costs Considerable Little Fault Tolerance
    19. 19. Case Study One: Smaller Firm, Bigger Ambitions <ul><li>Benefits </li></ul><ul><ul><li>Less time to ramp up to improved levels </li></ul></ul><ul><ul><li>Lack of firm management distraction </li></ul></ul><ul><ul><li>IT better supported and focused </li></ul></ul><ul><ul><li>Service levels incomparable to previous situation </li></ul></ul><ul><li>Drawbacks </li></ul><ul><ul><li>Costs were almost doubled </li></ul></ul>
    20. 20. Case Study Two: Big Firm, Practice Ambitions <ul><li>Profiles </li></ul><ul><ul><li>400-2400 attorneys </li></ul></ul><ul><ul><li>IT is mature </li></ul></ul><ul><li>Objectives: </li></ul><ul><ul><li>IT aims to be closer to the practices </li></ul></ul><ul><ul><li>Firm seeks operational efficiency </li></ul></ul><ul><ul><li>Consolidate and perhaps centralize operations </li></ul></ul><ul><ul><li>Ambivalence for operations responsibility (best performance and value for the least distraction) </li></ul></ul>
    21. 21. Case Study Two: Big Firm, Practice Ambitions <ul><li>Services </li></ul><ul><ul><li>Facilities and WAN </li></ul></ul><ul><ul><li>Facilities and Operations Management </li></ul></ul><ul><ul><li>Monitoring and Fault Tolerance </li></ul></ul><ul><ul><li>Third Level Support </li></ul></ul><ul><ul><li>Possible Systems and Content Management </li></ul></ul><ul><li>Issues </li></ul><ul><ul><li>Centralization drawbacks </li></ul></ul><ul><ul><li>Leadership buy-in to off-site facilities </li></ul></ul><ul><ul><li>Systems management associated with big vendors </li></ul></ul>
    22. 22. Case Study Two : Big Firm, Practice Ambitions <ul><li>Value </li></ul><ul><ul><li>Costs comparable for NY-based internal data center and professional third party data center </li></ul></ul><ul><ul><li>Vendor costs at higher service levels are a premium over internal costs for lower service levels </li></ul></ul><ul><ul><li>Vendors are pushing to lower costs 30% </li></ul></ul>
    23. 23. Case Study Three: Litigation Powerhouse <ul><li>Profiles </li></ul><ul><ul><li>Large or specialty firms with significant litigation support storage needs </li></ul></ul><ul><li>Survey of Leading Litigation Firms </li></ul><ul><ul><li>6-7 TBs of data internally, growing at 60% per year </li></ul></ul><ul><ul><li>Already managed centrally </li></ul></ul><ul><ul><li>No service levels defined </li></ul></ul><ul><ul><li>Do have failover plans </li></ul></ul><ul><ul><li>Use co-location facility for disaster recovery; vendors hosting 5-6 TBs of data </li></ul></ul>
    24. 24. Case Study Three: Litigation Powerhouse <ul><li>Objectives </li></ul><ul><ul><li>Handle massive storage growth </li></ul></ul><ul><ul><li>Address security and availability requirements </li></ul></ul><ul><ul><li>Need multi-office access to litigation cases </li></ul></ul><ul><li>Services </li></ul><ul><ul><li>Storage, backup and mirroring </li></ul></ul><ul><ul><li>Fault tolerant facilities; monitoring and capacity management </li></ul></ul><ul><ul><li>Possible data loading and processing </li></ul></ul>
    25. 25. Case Study Three : Litigation Powerhouse <ul><li>Issues </li></ul><ul><ul><li>- Costs and chargeback - Local printing </li></ul></ul><ul><ul><li>- Sensitivity to off-site data - Proprietary vendor software </li></ul></ul><ul><ul><li>- IT infrastructure availability - Costs for productions </li></ul></ul>Comparison of recent bid for 18 terabytes of litigation data: $50-100K/mo $500K/mo Hosting $20K $63M Data Loading n/a $7.2M Data Processing Co-Location Lit Vendor Service Capabilities
    26. 26. Case Study Four: Business Process Outsourcing <ul><li>Profiles </li></ul><ul><ul><li>Focus on larger firms for now: (top 100 in US and top 10 in UK) </li></ul></ul><ul><li>Objectives </li></ul><ul><ul><li>Reduce costs and increase efficiencies in firm processes across departments </li></ul></ul><ul><ul><li>Manage service levels rather than people </li></ul></ul>
    27. 27. Case Study Four: Business Process Outsourcing <ul><li>Services </li></ul><ul><ul><li>Incoming Correspondence Management </li></ul></ul><ul><ul><li>Electronic Content Management </li></ul></ul><ul><ul><li>Document Production </li></ul></ul><ul><ul><li>HR and Accounting Management </li></ul></ul><ul><li>Potential Value </li></ul><ul><ul><li>Transaction costs and time reduced through vendor’s high capacity environment </li></ul></ul><ul><ul><li>Can distinguish between commodity and value-added business processes </li></ul></ul>
    28. 28. Case Study Four: Business Process Outsourcing <ul><li>Issues </li></ul><ul><ul><li>Internal </li></ul></ul><ul><ul><ul><li>Changes to departments may not be subtle </li></ul></ul></ul><ul><ul><ul><li>Existing processes may be un-managed, dissimilar or poor practices </li></ul></ul></ul><ul><ul><ul><li>Cost- rather than benefit-based decisions </li></ul></ul></ul><ul><ul><li>Vendors </li></ul></ul><ul><ul><ul><li>Big corporate vendors have little flexibility across lawyers and practices </li></ul></ul></ul><ul><ul><ul><li>Managing information requires understanding and adaptability of business processes </li></ul></ul></ul>
    29. 29. Case Study Five: IT Internal Scorecard <ul><li>Profiles </li></ul><ul><ul><li>Primarily medium and large firms preparing to plan </li></ul></ul><ul><ul><li>Merger situations </li></ul></ul><ul><ul><li>New law firm management </li></ul></ul><ul><li>Objectives </li></ul><ul><ul><li>Understand how scope and levels of service compare </li></ul></ul><ul><ul><li>Gauge or justify costs </li></ul></ul><ul><ul><li>Identify gaps in IT processes </li></ul></ul><ul><ul><li>Provide benchmark for managed services </li></ul></ul>
    30. 32. Case Study Five: IT Internal Scorecard <ul><li>Services </li></ul><ul><ul><li>Joint effort to evaluate IT processes, service levels and costs and levels of risk </li></ul></ul><ul><ul><li>Benchmarked against managed service providers and other firms </li></ul></ul><ul><li>Issues </li></ul><ul><ul><li>Lack of internal performance data requires extrapolation </li></ul></ul><ul><ul><li>Many firm IT processes offer a poor benchmark </li></ul></ul>
    31. 33. Points to Take Away
    32. 34. Your Role <ul><li>Managed Service Preparedness </li></ul><ul><ul><li>Determine how IT best adds value </li></ul></ul><ul><ul><li>Consider your own role - better to be stretched thin, build internal expertise or manage a portfolio of staff and vendors? </li></ul></ul><ul><li>Be careful about getting to the point where firm management is driving the push </li></ul>
    33. 35. Sourcing Strategy <ul><li>Firms should know their own services, service levels, costs and risks even if not considering managed services </li></ul><ul><li>Smart to include build vs. buy decisions into IT and project planning </li></ul><ul><li>Firm should drive the service level expectations with vendors </li></ul>
    34. 36. Discussion and Questions

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