The last few years have seen our customers and prospects increasingly seeking to convert existing capacity-based relationships (staff augmentation, T&M contracts) to outcome-based 'managed services' relationships. The expectation clearly, is for HCL to become a strategic partner, driving business growth and transformation, rather than remain a mere supplier of IT capacity.
What are Managed Services?
Managed Services can be generically defined as running a service for a customer by a vendor on the agreed outcome measured as Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) for a fixed price. Certain components of managed service (typically in the application development scenario) could be variable in nature and priced using hourly rate card. The service is managed by the vendor pro-actively with minimal management overhead of the customer. The service is applicable to applications, infrastructure or both.
Central Idea surrounding Managed Services
The key value proposition for Managed Services is to deliver 'predictable services at a predictable cost' with continuous improvements and proactive value addition. The key benefit to customer is that it has to pay less for the same quality of service or gets a higher quality of service for the same price over successive years.
HCL's Framework for Managed Application Services (MASCoT™)
HCL has a comprehensive best-in-industry mature framework for managed services covering scope management, pricing models, governance & reporting mechanisms and delivery structures. Besides this, MASCOT also supports all processes in Managed Application Services including quality assurance, knowledge management, test management, project management, demand management, governance and transformation.
Benefits for the Customer & HCL
HCL’s Managed Services offers a 'win-win' proposition for both the customer and HCL. Customers are increasingly moving from staff augmentation to Managed Services to derive the following benefits:
- Reduce TCO
- Achieve predictable cost through application-based pricing for support and RICE/F (Reports, Interfaces, Conversions, Enhancements and Forms) based pricing for application development
- Gain access to best of breed tools at a reduced cost
- Free up management bandwidth to focus on core business
- Enable improvement in processes by leveraging the mature processes (CMMi/ ITIL) of the vendor
- Enable creation of Knowledge Management framework