This document discusses managed services and provides an overview of key topics: - It defines managed services as outsourcing of core business functions like network, hosted services, and IT management to a third party provider. - Managed services offer benefits like reducing capital and operational expenditures, improving network performance through vendor expertise, and allowing companies to focus on their core business. - The document compares managed services to outsourcing, noting that managed services transfer day-to-day management and aim to deliver standardized IT functions as a service. - Top managed services offered include network management, IT infrastructure management, security management, and unified communications. The needs of telecom operators and expectations from managed service providers are also

1. Managed Services
Rakeysh Ranjan Symbiosis Institute of Telecom Management

2. Agenda
•Introduction
•Different types of managed services
•Top managed services and trends
•Business benefits and losses
•Comparison with outsourcing
•Case Study

3. 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

4. MS: An alternate Business Models
•When it all started?
•Outsourcing of core business functions
•Can be broken into 3 categories:
 Network
Hosted Services
IT
•Strategic Partners: Planning, Deploying,
Maintaining and Optimizing the network

5. 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

6. Managed Services Models

7. Models of Managed Services
•Complete IT Operations Managed Services
•Complete Hosting and IT Operations Managed
Services
•Complete Outsourced Managed Service

8. Managed service differentiators
33.90%
many vendor/partner relatioships 22.20%
25.30%
fast turnaround and delivery 27.50%
28% AVG
proactively manage customer risks
and costs 33.30% BIC
50%
trusted advisor releatioship 38.90%
44%
exceptional technical support 47.20%

9. Top managed services offered
response
120.00%
100%
100.00% 94.70%
80.50%
80.00% 71.10%
60.50% 63.20%
60.00%
40.00% 36.80%
30.80%
30.50%
response
20.00% 10.50%
0.00%

10. Expectations of MNCs from MSPs
offer more value for the
price
11% deliver price quotes in a
timely manner
13% 38%
provide price quotes that
are easier to understand
15% improve billing accuracy
20% correct billing errors in a
timely manner

11. Benefits of managed services
• Reduction in CAPEX
COST • Optimization in OPEX
• Access to technical expertise & core competencies
TECHNOL • Improved network performance & efficiency
OGY • Operational excellence
• Improved service flexibility, availability & security
SERVICE • Integration of complexity
• Economies of scale
• Risk sharing & transfer
GROWTH • Alignment of IT with business strategy

12. Benefits

13. Pitfalls from Managed Services
• Complicated Relationship Management
1
• Loss of flexibility & control over the network
2
• Performance issues & spectrum scarcity
3
• Threat to information security in multivendor & multiclient
4 ecosystem
• Too much dependency on a selected vendor-Vendor
5 Lock

14. 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.

15. Comparison
Outsourcing Managed Services
Outsourcing involves a long-term, A managed service is the practice of
contractual arrangement transferring day-to-day related
management.
Outsourcing is the process of A managed service provider is tasked
removing entire departments, with delivering one or more IT
including equipment, people and functions as a service.
functionality.
It delivers a set service and is not A managed service provider offering
flexible at all 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

16. 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.

17. 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

18. 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

19. 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.

20. Thank you