Operating Models: When Resource Provisioning works
Resource Provisioning is the most often and a proven model in operating IT outsourcing relationships.
There are a few major traits that make such a model relevant and successful
- Maturity of the engaging parties: The governance and operational maturity of the consumer and provider of the IT services is the biggest factor when looking at resource provisioning.
- When Consumers require more control, does not have a structured development process or a highly agile process and where the cost is driven by shorter goals rather than multi-year budgets. Such consumer tend to lean to resource provisioning services
- Similarly, Providers that do not have the ability to mold consumer though process, are less mature from process and organization structure point of view tend to have a havier mix of resource provisioning operations. The size of the organization often has a bearing on the operating mix, not neccessarily as a leading indicator. Smaller organization have a much lower threshold of risk, which is typically degrees of magnitude higher in turnkey relationships, thus making resource provisioning attractive, especially to achieve size.
- Maturity of the relationship: Outsourcing relationships typically go through evolution before a comfortable balance is achieved. Even for large outsourcing relationships, typical first step is to get the right people for the right positions, oft-times in a resource provisioning model. Initial phase of the relationship lean towards building trust in capability and engagement. Resource provisioning is a mechanism to prove the capability, deliver value in the short term, and in the process convert the relationship to a long term managed engagement.
These two factors by and large include a host of factors that affect the operating model. Managed service models are also driven by these two factors and other additional factors such as commercial and engament models.