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Conclusion: This month, the number of tenders and plans has continued to grow, highlighting the important role projects play when it becomes necessary to replace legacy systems, capitalise on new or evolving solutions or simply adapt to changed business operations or environments. Customers understand that avoiding complacency and market disconnect is critical, yet this still exists, with project plans to replace technologies such as paper-based messaging or tape data storage being announced just this month. It is critical for vendors to provide advice and ongoing support for customers in order to strengthen and simplify migrations and transformation, and more importantly, identify project objectives and final goals when replacing legacy systems.

Conclusion: With both the NSW and commonwealth parliaments passing respective Modern Slavery Acts in 20181, there are now real implications and consequences for business leaders and their suppliers who ignore the risks of slavery within their supply chains.

Unlike the California Transparency in Supply Chains Act 2010 which applies to tangible goods offered for sale, Australian firms will need to disclose their efforts to eradicate slavery and human trafficking from their supply chain of both goods and services. This means at least 2,100 public and private firms2 have until 1 July 2019 to ask explicitly of suppliers, whether local or foreign, off-premise Cloud or on-premise device manufacturer: What are you and your organisation doing with respect to modern slavery risks?

For many organisations in Australia this will mean more than just adding new evaluation criteria to be applied to current and potential suppliers. Rather it requires providing an accurate attestation on the issue of modern slavery which will require lifting the hood on all manner of “as-a-Service” offerings. Thereby exposing aspects of service delivery that the majority of firms previously thought they no longer needed to concern themselves with, having “transferred” risks, such as those found in supply chains, to their vendor partners.

Conclusion: Finding superior talent has always been a challenge, even more so now. Traditional attraction and retention strategies still have value in most situations. However, there are novel ways to think about attracting talent in a digital world, including rethinking the need to attract talent at all by rethinking the business problem.

In many cases, technical skills can be taught on the job. What is harder to teach – and is therefore highly sought after – is the triple-crown of critical thinking, creativity in problem solving and curiosity. Consider putting those three characteristics at the top of the talent wish list and adapt existing recruitment practices to identify, attract and retain the right talent.

Conclusion: This month, discussions regarding rising costs associated with outsourcing have been prominent. Whilst benefits from outsourcing in the form of efficiency and financial savings have been clear for some time, customers can find that savings are not as high as expected due to increased complexities associated with new offerings and associated implementation. For instance, customers that moved to the Cloud for storage and compute solutions benefited from the large number of vendors in the market and more competition. However, as the market has matured, customers demand more sophisticated offerings to leverage new technologies such as artificial intelligence and machine learning. As a result, infrastructure and associated services have become more costly, coupled with add-ons and Software-as-a-Service costs. Whilst cost benefits remain a priority for customers, it is also important for thorough cost optimisation reviews, and the engagement of specialist services to rationalise and assist with the management and restraint of outsourcing expenses.

Conclusion: This month, discussions regarding offshoring initiatives have been prominent following announcements by two vendors that plans are in progress to send work overseas. Though offshoring can be beneficial in terms of cost and the ability to obtain talent not available in the local market, the approach can cause difficulties for organisations. For instance, local protest or a loss of customer confidence can arise due to perceptions that offshoring practices are simple cost-cutting efforts which come at the expense of quality service. However, offshoring initiatives can be critical to meet demands for vendors to provide new, quality offerings in a highly competitive environment. The need to go beyond the local market is driven by more than mounting staff costs. Although risks associated with cultural barriers or customer backlash exist, benefits can be significant when providing unique and high-quality offerings. Vendors must achieve a balance between local and overseas services, as well as maintaining a positive view of offshoring as more than a simple cost-cutting exercise which results in low quality service, to an exercise that can enhance offerings resulting in improved services.

Conclusion: This month, security issues and responses to threats specific to managed service providers have been discussed. Attacks on vendors can be particularly serious because of provider interaction with customer environments and access to information. These difficulties can be exacerbated by other issues facing vendors, such as obtaining additional resources from contractors, inexperience or lack of expertise with complex, unfamiliar environments. Recent attacks on service providers have raised concerns because of threats to customer environments, as well as flow-on effects such as uncertainties relating to vendors and difficulties establishing trust with customers. New programs, education and vendor collaboration have been launched to address provider-specific security issues. It has been recognised that establishing best practices and protocols to help avert, detect and respond to security threats is required in the industry.

Conclusion: “C-suite” leaders including CIOs and IT managers must continually adapt and change their mindset to be digitally savvy in order to keep pace and influence the digital revolution at the workplace12. Failure to do so will increase risks to implement initiatives whilst harming their own careers and those under their care.

Conclusion: This month, there has been a range of company acquisitions, consolidations and partnerships in the managed services industry. These types of purchases can allow vendors to obtain resources necessary to adapt to emerging industries and new offerings. Purchasing providers can be beneficial, expanding and enhancing a firm’s products and services with the successful integration of companies. This has resulted in trends including more targeted purchases such as company assets, or the amalgamation of a number of vendors with very different specialties to provide new offerings and adapt to market shifts. Failure to adapt offerings and business structures which allow for these changes can impact on vendor credibility and is critical in a market where proactive, innovative and highly specialised providers are required by customers.

Conclusion: Increasingly, IT departments are looking for ways to divest their operations of undifferentiated activities – that is, activities that are common among most organisations. One technology that is ubiquitous across every organisation, in every vertical sector, is end-user computing. Theoretically, it should be an easy area of IT to be deployed via a fully managed service. In reality, IBRS has seen more failures in the space than successes.

The reasons why fully managed (aka “as-a-Service”) end-user computing initiatives fail is a result of the initial rationale for the go-to-market strategy and the resulting request for proposal (RFP).

Related Articles:

"IBRS Compass: Beyond the Desktop: Creating a Digital Workspace Strategy for Business Transformation" IBRS, 2016-01-02 11:39:29

"The Components of a Self-Service Desktop" IBRS, 2014-10-01 18:36:09

"The use and abuse of Personas for end-user computing strategies" IBRS, 2017-03-04 16:53:10

Conclusion: This month, discussions regarding the need to strengthen security and recovery solutions have been prevalent. The increased number of breaches which compromise private user data and interfere with business operations has become apparent. While technologies and frameworks can assist with avoiding and recovering from security events, weaknesses still exist when integrating security strategies with company structures and culture. Human error, and the failure to educate or provide all employees with skills to avoid, detect or respond to security events, has been flagged as a particular concern. Any security structure must provide resources that can support employee vigilance and slot into a company’s culture.

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