What can be considered ‘warranty management’ for a managed IT service?
In the plethora of IT offerings companies are faced with, products and services have become extremely competitive not only with regards to price, but also in offering their assurance that what they offer is of good quality, will last in time and can deliver on its promise. As this has become the norm, no business would dare buy hardware or software that came without a written warranty. But how can organisations have some sort of guarantee of quality and efficiency when what they want to buy is not a product but a service?
Best practice is designed to understand the utility and warranty of any investment and it is important the distinction between the two is understood. The utility of an investment is the recognition of whether it is ‘fit for purpose’; the warranty goes beyond that to recognise whether your fit-for-purpose product is actually fit for use.
Firstly, it is important to understand which aspects are central in defining what can be identified as ‘warranty’ for a managed service. A good track record is of course imperative for the Service Provider, but this does not necessarily mean a very large number of clients of all types and sizes. Larger and widely-known Service Providers are not automatically the best choice for an organisation – can they understand your particular business, give you what you need and deliver the most cost-efficient service? You will find that a provider which is specialised or has relevant experience in dealing with organisations that are very similar to yours in type, size and needs might be the best choice for you. So this is what you should look at as a guarantee: a provider that has successfully carried out projects for clients that are similar to your organisation.
At the same time, it is important that the provider does not offer you an out-of-the-box solution for ‘all organisations like yours’. You might be similar in your structure and needs to other organisations, but this does not mean that you do not have some important differences. For example, NHS clinics all have similar needs and structure, but are very different in the way they deal with them – most clinics will use customised software and have different types of end users. The same is true for financial firms, from banks to private investment or currency exchange firms, where efficient and tailored IT is a vital element for their success. In fact, every sector is vastly different, so in a selection exercise, be sure to understand the Service Providers you are talking to can offer positive evidence that they have supplied similar solutions. Further to that, Service Providers that service a wider range of sectors will typically have a greater advantage in providing bespoke or ‘tailored’ solutions for your organisation.
These aspects are crucial in your choice of Service Providers, but what can guarantee the quality of the actual service itself? This mainly lies in the Service Level Agreement (SLA), which outlines agreed levels of performance monitored through certain metrics such as First-Time-Fix rate, calls answered within a set time, Abandonment rates, etc. These targets need to be consistently met, and if they are not, the Provider will be in breach of the SLA, which can have a financial impact. Consistently missing targets might mean the Provider losing the client and, in the long run, their reputation as well. With these metrics in place, it is in the provider’s own interest to perform at their best and not incur in fines or contract termination.
The choice of SLAs can make the difference between real and perceived efficiency and inefficiency. It is good practice to spend some time deciding, together with the Provider, what metrics to adopt (some will be more relevant than others) and where to set targets. Metrics have to be very detailed – setting a typical ‘70 % First Time Fix rate’ on its own is not enough. Ask yourselves: what counts as FTF? It normally refers to simple and common issues dealt with by Service Desk staff; but should printer cartridge replacement be considered a FTF even if it’s done by desk-side engineers? If some end users insist in a desk visit will it not be included in the FTF rate? This allows to have a clearer picture of how efficient of inefficient the service is and to understand if a managed service solution is right for your organisation or should be somehow modified to improve performance.
These metrics need to be tangible and agreed before they are incorporated into a live service.
In conclusion, we could say that a ‘warranty’ for a managed service should cover both the Service Provider and the service offered. It is a guarantee of quality if the Service Provider has the right track record for your company and the appropriate SLAs are in place, as well as fines and penalties for breach of the agreement. Only by carefully choosing the Service Provider which will manage your IT service it is possible to achieve efficient IT which is able to support and enable business success whilst bringing cost savings and general efficiencies to working practices.
This piece has been published on ITSM Portal.