The Digital Revolution Demands New Thinking When Transitioning Services

In the pre-digital world, transitioning application services from an incumbent provider to a new provider primarily was about transferring knowledge and achieving a set of contractual milestones. When complete, both parties claimed success: the client began to see cost reductions and service benefits associated with the sourcing transaction, and the provider began to bill and recognize revenue.

This approach is increasingly obsolete. While milestones are still important, the digital revolution requires a whole new way of transitioning applications. Instead of merely checking the box on a “lift and shift” approach, organizations today are measuring transition success by how quickly and dramatically they can transform processes and team roles and responsibilities to take business outcomes to the next level. The pre-digital model above reflects completion of transition before undertaking transformation. This approach will fail in a world where IT must move at the speed of business. This requires that transition and transformation run in tandem.

This ISG white paper explores ten key tenets enterprises must embrace to shift their thinking from a traditional plan-practice-go-live approach to transformation.

About the authors

Beth Anderson is a sourcing transition and change management leader who is passionate about ensuring that clients are equipped to realize the full value of their sourcing relationships. Her decades of experience span IT and shared services sourcing and insourcing, managed services transition, supplier management and governance optimization, operating process alignment, retained organization design and employee readiness, and sourcing communications across multiple industries.

Mr. Koenig is an ISG Principal Consultant working with clients to assess and implement improvements to their Application Development & Maintenance (ADM) Services organizations. He brings depth in operational knowledge and outsourcing to ISGs clients. Darius's expertise includes Application Services Management, Application Development methodologies, Service Level Agreements (SLAs), offshore delivery, project management and testing services. He been consulting for 5 years after a long career in leading service delivery organizations.