Building Financial Models for IT Service Delivery

The process of modeling financial options for IT service delivery is evolving as service delivery components become more fragmented, service provider options multiply, contract maturities decrease and enterprise IT organizations adapt to a service delivery “assembly” culture.

Before the economic meltdown of 2008 – 2009, the rate of change in enterprise IT service delivery models proceeded at a glacial pace. Most organizations operated with an internally focused set of service delivery capabilities (using internal resources, applications and infrastructure to meet the needs of the enterprise) or with a two-dimensional outsourcing model (the enterprise and a single broad-line outsourcer). For purposes of this discussion, we define service delivery models to include the entire portfolio of service delivery processes as opposed to the selective outsourcing of individual service delivery components.

 

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