ICT outsourcing on consumption based costs

By ajay kumar uppal

ICT should support Growth and Divestitures

• Considering businesses can grow, merge, carve-out and go through divestitures; the underlying ICT needs to support – Capacity increase (ramping-up resources) and– Capacity decrease (ramping down resources)• Resources include underlying infrastructure like DCs,

HW, Network, Telecommunications, Business Applications, other Technology elements, ICT/ Support Staff, On-going services, Maintenance etc.

ICT Providers should share the gain and also the pain

• ICT providers must offer OPEX based services• ICT providers must allow for volume based pricing

• where customers can increase or decrease or order services on-demand in-line with business requirements.

IT HW, SW and Services companies need to look atoffering services on usage / actual consumption asopposed to ‘dumping ’.

How to offer/buy consumption based services?

• Customers should define ‘parameters’ of consumption e.g. Population, Time, Capacity etc..

• ICT providers should also come forward with ‘per unit’ rates/prices whereby customers can increase or decrease the volumes/quantities..

• End to end services should be expressed in terms of simple consumption units e.g. – Desktop support per end-user (like US $ 40/End-user)– Application as a service or IaaS or PaaS or SaaS based on

» Compute capacity and storage per GB or TB • e.g. SAP Service @ $88/1000 SAPS, $ 4000/TB of HANA