The Role of Tools in IT Infrastructure Outsourcing: How Investments in Tools Can Create Competitive Advantage

30 Oct 2007

$249.00

The infrastructure tools market has grown significantly over the last 20 years, expanding the tool capabilities into multiple areas of IT infrastructure operations.

We classify tools involved in Infrastructure Outsourcing (IO) service delivery
either as infrastructure management (IM) or governance tools, as follows:

  • IM tools are a set of applications helping manage the functioning of IT infrastructure including storage devices, servers, and networks. The focus isprimarily on the operations in a typical infrastructure environment.
  • Governance tools are applications governing the IT operations with service-level guidelines and providing business transparency of the IT effort.

The IM tools provide significant operational benefits for a supplier of IT
infrastructure outsourcing. Yet, they are unlikely to provide competitive
advantages in the marketplace, mainly because their capabilities do not
include drivers of competitive advantages.

The governance tools landscape is scattered with many tools, but none cover
the entire bandwidth of functionalities within IT outsourcing governance. Hence, strategic investment in governance tools can result in creation of crucial competitive edge. Two aspects reflect the current market acceptance of governance tools:

  • The governance tools market is not well served in key functional capabilities
  • The majority of buyers using governance tools to manage relationships are not satisfied with their tools

This paper discusses:

  • Definition of IM and governance tools and the overview of the tools developed by the outsourcing suppliers
  • Issues around tool usage in infrastructure outsourcing and reasons for outsourcing suppliers’ investments in proprietary solutions
  • Analysis of investments in tools as a source of competitive advantage
 

Page Count: 13