**London**: A new report by Info-Tech Research Group highlights common challenges organisations experience when forming managed service agreements with IT providers, offering a blueprint for improving alignment and performance measurement to enhance operational efficiency and maintain effective vendor relationships.
A recent publication by the Info-Tech Research Group highlights the challenges organisations face when establishing managed service agreements (MSAs) with external IT service providers. The firm outlines that as more businesses turn to managed service providers (MSPs) to enhance operational efficiency and tap into specialised IT expertise, they frequently encounter obstacles that undermine these partnerships.
Among the key issues identified are misaligned objectives between organisations and their service providers, vague performance metrics, and insufficient risk management frameworks. These factors can lead to inefficient operations, unexpected financial burdens, and strained vendor relationships. To address these issues, Info-Tech has introduced a blueprint titled “Ensure Business Alignment in Managed Service Agreements,” which aims to provide IT leaders with structured methodologies for crafting service agreements that align closely with an organisation’s strategic objectives.
Manish Jain, principal research director at Info-Tech Research Group, emphasised the importance of a structured approach, saying, “Building a comprehensive, business-aligned managed service contract is not about reinventing the wheel but pursuing the right process rigorously.” He further noted that organisations must clearly delineate the scope and responsibilities of service providers and establish robust governance structures to monitor performance effectively.
The blueprint delineates a three-phase approach intended to foster improved transparency, cost control, and risk mitigation while bolstering vendor relationships.
In the first phase, organisations are encouraged to clearly define their business objectives and ensure that the engagement model and service scope are aligned with these goals. A well-defined engagement from the outset is crucial in preventing potential contract misalignments and inefficiencies.
The second phase focuses on establishing meaningful service-level agreements (SLAs) and key performance indicators (KPIs) that align with business priorities. This includes implementing a governance framework that supports ongoing service optimisation and accountability, ensuring that the benefits of the service remain aligned with the organisation’s evolving needs.
The final phase advocates for proactive risk management, including a thorough assessment of disaster recovery plans, business continuity strategies, and exit strategies. This ensures that organisations remain flexible and stable throughout the duration of their agreements.
By adopting the strategies outlined in Info-Tech’s blueprint, organisations are positioned to improve contract management visibility, mitigate unforeseen expenses, and enhance overall IT risk management capabilities. This, in turn, fosters better service quality, operational agility, and the resilience of partnerships with their managed service providers.
Source: Noah Wire Services
Subscribe to Industry Updates
