Discover Performance Blog

Welcome to the Discover Performance blog, a resource for enterprise IT leaders who share a passion for performing better. Here you’ll find strategic insights and best practices from your peers as well as from HP’s own practitioners who help others define, measure and achieve better IT performances.

For additional in-depth articles on critical topics for IT executives, visit  http://hpsw.co/b7NWj4e

How to reduce the cost of managing multi-supplier IT

felix fernandez.jpgBy Félix Fernández

 

Félix Fernández is a CTO with HP Software Professional Services covering ITSM, PPM and SIAM.

 

How would you structure your IT department if you had to create one from scratch? How much would you center in-house, and how much would you allocate to external suppliers? I was talking to a CIO recently who’s in this very situation. He’s at a brand new company with a lot of investment. Now, not many people are faced with this problem. But the solution tells you a lot about where enterprise IT is headed. It should be no surprise that this CIO is looking to various IT suppliers for what he needs. He’s going to keep his core, competitive-advantage IT in house and look externally for the rest.

 

My CIO friend told me, “I don’t want to have a cost center. I know there are suppliers who can do x, y, z much better than I can.” Maintaining all these various functions in-house is like having your own energy or power plant. Nobody does that.

 

Of course you wouldn’t maintain your own power plant to deliver electricity to your business. That wouldn’t be very cost effective. But this analogy breaks down a bit when you consider that there’s a management cost associated with bringing in and integrating multiple suppliers. (Frost & Sullivan just came out with an illuminating report on this issue.) IT is not yet as simple as flipping an electrical switch! And often, if you’re not careful, you can miss significant cost savings because of management complexity. Here’s what I tell customers about how they can achieve additional cost savings by using a service integration and management (SIAM) solution to manage multiple suppliers.  

Labels: SIAM
Search
Showing results for 
Search instead for 
Do you mean 
About the Author(s)
  • Alec Wagner is a longtime writer & editor, enterprise IT insider, and (generally) fearless digital nomad.
  • Lending 20 years of IT market expertise across 5 continents, for defining moments as an innovation adoption change agent.
  • This account is for guest bloggers. The blog post will identify the blogger.
  • I'm the community manager for Discover Performance and have been a writer/editor in the technology field for several years.
  • Mike has been with HP for 30 years. Half of that time was in R&D, mainly as an architect. The other 15 years has been spent in product management, product marketing, and now, solution marketing. .
  • Paul Muller leads the global IT management evangelist team within the Software business at HP. In this role, Muller heads the team responsible for fostering HP’s participation in the IT management community, contributing to and communicating best-practice in helping IT perform better.
  • Rafael Brugnini (Rafa) serves as VP of EMEA & APJ for HP Software. Joining in 1996 and has more than 20 years of knowledge and experience linked to HP. He resides in Madrid with his wife and family, and in his spare time he enjoys windsurfing.
  • Evangelist for IT Financial Management (ITFM), IT Governance and IT Portfolio Management, consulting IT organisations for Close to 15 years on principles of good governance.
Follow Us


HP Blog

HP Software Solutions Blog

Labels
The opinions expressed above are the personal opinions of the authors, not of HP. By using this site, you accept the Terms of Use and Rules of Participation