Ilta 2005 - Evaluating Managed Services - Benchmarks and Case Studies by Dave Cunningham - Aug 2005
Download as PPT, PDF1 like477 views
The document discusses evaluating managed IT services through case studies of law firms. It defines managed services and the most common types. Case studies describe how smaller and larger firms used managed services to improve IT capabilities, efficiency and consistency across offices. A litigation firm used managed storage services to address massive data growth. Business process outsourcing reduced costs and increased efficiency. An internal IT scorecard helped firms understand service levels and costs to determine if managed services were appropriate.
![Evaluating Managed Services - Benchmarks and Case Studies Presented by: Dave Cunningham, Baker Robbins & Company [email_address] August 24, 2005](https://image.slidesharecdn.com/ilta2005evaluatingmanagedservices-benchmarksandcasestudiesbydavecunningham-aug2005-111211231348-phpapp02/85/Ilta-2005-Evaluating-Managed-Services-Benchmarks-and-Case-Studies-by-Dave-Cunningham-Aug-2005-1-320.jpg)
Ilta 2005 - Evaluating Managed Services - Benchmarks and Case Studies by Dave Cunningham - Aug 2005
- 1. Evaluating Managed Services - Benchmarks and Case Studies Presented by: Dave Cunningham, Baker Robbins & Company [email_address] August 24, 2005
- 2. Objectives Establish a practical definition of managed services Discuss case studies from the past year, some who decided to use managed services and some who did not Help you understand how to determine if managed services are appropriate for you and your firm
- 3. Today’s Agenda Background Market Status Case Studies Case Study #1: Small Firm with Big Ambitions Case Study #2: Big Firm IT with Practice Ambitions Case Study #3: Litigation Powerhouse Case Study #4: Business Process Outsourcing Case Study #5: IT Scorecard Points to Take Away
- 4. Defining IT Managed Services “ Transfer of day-to-day management of one or more IT infrastructure environments or functions to an external service provider.” Butler Group While outsourcing is seen as all or nothing, “managed services” refers to discrete services or sets of services handled by an external resource to allow a company to focus on its core competencies.
- 5. Defining Managed Services Managed services involve: Defined services Service level agreements Performance measures (objective and subjective) Calendar or milestone timeframe (Term) Legal terms and conditions
- 7. Most Common and Growing Services WAN Disaster Recovery Net Hosting Help Desk Data Center and IT Operations Application-Specific Hosting or Recovery
- 8. Influences on Firms Pressure for higher-level service without higher costs “ One firm”, multi-office, international support needs Technology better suited for centralization, consolidation More IT involvement in the practices Litigation storage explosion Challenge in attracting and retaining specialized IT talent
- 9. Gartner Group on the CIO The New CIO Leader's IS organization must be leaner and more focused on business results by appropriately using strategic sourcing of IT services, by adopting process based working, and by using all the financial resources available to it.
- 10. Market Status: Overview Management is more comfortable with internal, on-site services IT management can see outsourcing as a threat Few services are outsourced to save money Some firms are using service levels and ‘cost of services’ information to deliver services better internally Market is immature; at a slow turning point Firms are not experienced in engaging managed service suppliers Suppliers historically provided poorly fit bids Vendors are more focused on specialty services Wide disparity in vendor services and costs
- 11. Market Status: Vendors IT operations, support and/or facilities: Intelliteach - Office Tiger / Hildebrandt LexisNexis - Savvis Markley Group - SunGard MindShift (Aspire/Union Square) - Thomson Network Alternatives Niche players Lex Solution, Steelpoint, Ringtail, CaseCentral, etc. NetDocuments, Hubbard One, MessageOne Business Process Outsourcing: Williams Lea (Bowne), Perot Systems, IBM, Deloitte
- 12. Example Performance Indicators Service Levels (objective) System availability: 99.97+% Help desk: 20 second response for phone calls; 85% first call resolution Guaranteed problem resolution times ( e.g., 2 hours for Severity 1 systems) 24x7x365 operations (optional off-site, centralized operations)
- 13. Example Performance Indicators Key Performance Indicators (subjective) User survey results Management satisfaction Adaptability Collaboration with internal staff or other suppliers Quality of information exchange Service improvement programs
- 14. Instigators of Managed Services Managed services are usually not considered in a static environment. - Firm management dissatisfaction - IT failure - Concern over IT costs - Management changes - IT strategic planning - IT project planning - Merger considerations - Office or data center move - Disaster preparedness planning Negative Influencers Positive Influencers
- 15. Case Studies
- 16. Case Study One: Smaller Firm, Bigger Ambitions Profiles Firms 50-250 lawyers 2-8 offices Objectives Large firm IT capabilities Growth on tap Consistency across offices Make up for lack of IT availability
- 17. Services IT operations, upgrades and fault tolerance Includes hosting of accounting and telephone Help desk (except desk-side support) IT staff development Issues Limited number of capable vendors Separate help desk Vendor personalities were important Firm’s role in transition Case Study One: Smaller Firm, Bigger Ambitions
- 18. Case Study One: Smaller Firm, Bigger Ambitions Yes Ad-Hoc Upgraded, consistent systems Immediate None Third Level Support Yes None Centralized, professional facilities Immediate Ad-Hoc Help Desk After Before Service Features $4000 / user $2200 / user Approximate Costs Considerable Little Fault Tolerance
- 19. Case Study One: Smaller Firm, Bigger Ambitions Benefits Less time to ramp up to improved levels Lack of firm management distraction IT better supported and focused Service levels incomparable to previous situation Drawbacks Costs were almost doubled
- 20. Case Study Two: Big Firm, Practice Ambitions Profiles 400-2400 attorneys IT is mature Objectives: IT aims to be closer to the practices Firm seeks operational efficiency Consolidate and perhaps centralize operations Ambivalence for operations responsibility (best performance and value for the least distraction)
- 21. Case Study Two: Big Firm, Practice Ambitions Services Facilities and WAN Facilities and Operations Management Monitoring and Fault Tolerance Third Level Support Possible Systems and Content Management Issues Centralization drawbacks Leadership buy-in to off-site facilities Systems management associated with big vendors
- 22. Case Study Two : Big Firm, Practice Ambitions Value Costs comparable for NY-based internal data center and professional third party data center Vendor costs at higher service levels are a premium over internal costs for lower service levels Vendors are pushing to lower costs 30%
- 23. Case Study Three: Litigation Powerhouse Profiles Large or specialty firms with significant litigation support storage needs Survey of Leading Litigation Firms 6-7 TBs of data internally, growing at 60% per year Already managed centrally No service levels defined Do have failover plans Use co-location facility for disaster recovery; vendors hosting 5-6 TBs of data
- 24. Case Study Three: Litigation Powerhouse Objectives Handle massive storage growth Address security and availability requirements Need multi-office access to litigation cases Services Storage, backup and mirroring Fault tolerant facilities; monitoring and capacity management Possible data loading and processing
- 25. Case Study Three : Litigation Powerhouse Issues - Costs and chargeback - Local printing - Sensitivity to off-site data - Proprietary vendor software - IT infrastructure availability - Costs for productions Comparison of recent bid for 18 terabytes of litigation data: $50-100K/mo $500K/mo Hosting $20K $63M Data Loading n/a $7.2M Data Processing Co-Location Lit Vendor Service Capabilities
- 26. Case Study Four: Business Process Outsourcing Profiles Focus on larger firms for now: (top 100 in US and top 10 in UK) Objectives Reduce costs and increase efficiencies in firm processes across departments Manage service levels rather than people
- 27. Case Study Four: Business Process Outsourcing Services Incoming Correspondence Management Electronic Content Management Document Production HR and Accounting Management Potential Value Transaction costs and time reduced through vendor’s high capacity environment Can distinguish between commodity and value-added business processes
- 28. Case Study Four: Business Process Outsourcing Issues Internal Changes to departments may not be subtle Existing processes may be un-managed, dissimilar or poor practices Cost- rather than benefit-based decisions Vendors Big corporate vendors have little flexibility across lawyers and practices Managing information requires understanding and adaptability of business processes
- 29. Case Study Five: IT Internal Scorecard Profiles Primarily medium and large firms preparing to plan Merger situations New law firm management Objectives Understand how scope and levels of service compare Gauge or justify costs Identify gaps in IT processes Provide benchmark for managed services
- 32. Case Study Five: IT Internal Scorecard Services Joint effort to evaluate IT processes, service levels and costs and levels of risk Benchmarked against managed service providers and other firms Issues Lack of internal performance data requires extrapolation Many firm IT processes offer a poor benchmark
- 33. Points to Take Away
- 34. Your Role Managed Service Preparedness Determine how IT best adds value Consider your own role - better to be stretched thin, build internal expertise or manage a portfolio of staff and vendors? Be careful about getting to the point where firm management is driving the push
- 35. Sourcing Strategy Firms should know their own services, service levels, costs and risks even if not considering managed services Smart to include build vs. buy decisions into IT and project planning Firm should drive the service level expectations with vendors
Editor's Notes
- #24: 7 TB x 60% for 5 years = 73 TB Some firms already have 20-30 TB Some firms report 200% growth