1. IT Service management

2. Incident and Problem Resolution
Components of Service Management
Service Desk: Handle L1 calls by Phone, , Chat
Monitoring : Some command centres are contracted to monitor servers (Physical / Virtual) on a 24/7 basis for availability. Any outages are then reported in the service desk tool
Reporting : Customers are provided with online reporting tool that shows data on Availability, Resolution time, Ticket violations
Incident and problem management: Based on agreed SLA, service desk needs to address incidents, service requests, problem tickets in a proper manner and communicate to users and management accordingly.
Quality standards: ITIL, Six Sigma, LSS, ISO are some of the standards implemented across service desk / command centres
Components
Service Desk
Monitoring
Reporting
Incident and Problem Resolution
Quality Standards

3. Why Service Management
The Service Management Industry in India is growing at the rate of 35 – 40% Year on Year
In 2003 the IT spend was 3 Billion USD, 11.3 by 2010 it was 11 Billion USD and by 2014 it stands at about 20 Billion USD.
Number of people working in the service management sector stands at over 1 million resources across India.
Number of companies with service management setups in India is close to 1000.
The savings companies get by implementing service management is 3-5% cost reduction in cost and productivity increase by 3-5%

4. Phases of Benefits Short Term
Regular improvement initiatives implemented like
Resource Cross skilling
Shift Left
Benefits
Limited
One time
Expectations from Viva
Access to multiple systems
Result – Immediate
Cost reduction by xx% (one time)
Medium Term
Technology consolidation
Consolidation of applications based on Technology
Global Support with common technical resources
Automated tools
Short term
Common set of SLA’s
Common Contracts for all vendors
Common tools
Common Quality standards
Common Knowledge management tools
Result – Impact within 3- 6 months.
Cost reduction by XX% within 6 months
Long Term
Functional Consolidation
Applications with same functionality but different technologies to be consolidated
Integrated Applications list
Common SME’s
Substantial
Long term
Common applications used by all regions
Consolidation of vendors based on functionality
Result – Impact within 6 – 9 months.
Cost reduction by XX% within 9 months
%age cost reduction in year 2 and
%age cost reduction in year 3
For Tech Mahindra to move to a strategic role, it is important for Viva to provide Tech Mahindra with
User Access to multiple systems / environments
Use Common Tools and Common processes
Common Knowledge management databases.
With the implementation of these initiatives by Viva, Tech M will be in a better position to deliver more value to the long standing engagement.

5. Recommended engagement model?
Insourced Model
In this model, the customer will manage and run the Managed Services
Advantages
Full control with Viva
Better reaction time
No fear of loss of Information
Challenges
Long Learning Curve
MS is not core business for Viva
Extra cost to manage and maintain (resources, attrition)
Time and Material Contract
In this model, Viva will get into a T&M contract with one or more vendors
Advantage
Customers only pay for the effort spent
Vendors tend to deliver slower because more time means more money
Vendors tend to over estimate, over bill.
Service based contract
The customer signs up for Managed Services based on the service catalog
Customer gets to choose the services they want
Pay only for the services selected
One of industry’s best practices
Vendor needs to develop expertise in many service areas
Cost optimization across services is tough

6. Different Pricing models
Monitoring only
Provide N/W monitoring and alert services
Application and OS Patch management, Anti virus updates, disk optimization and regular backups may be on fixed price rest or the mediation (through monitoring) on T&M
Unit pricing - Per Device / per Ticket / Per Call / Per user pricing
MSP’s charge per device (Network, Server, desktop) being supported
Some MSPs charge customers based on the number of tickets / calls received. This may be charged on a slab basis
Volume basis (Annually) – First 5000 tickets, 5000 – 10000, – 15000, > 15000
MSP’s charge per User base to support. This type of pricing is generally in slabs users, 51 – 100, 100 – 200 users, > 200 users etc
Combination Pricing
Could also be a combination of devices and users, devices, users, tickets / calls
The contract can be for 5 servers, 50 desktops and 75 users
The contract can be for 10 servers, 30 desktops, tickets / calls per annum etc.
Service based / Tiered Model
One of the popular models among MSP’s. Here the customer selects the number of services he wants support for based on the company’s service catalog
The MSP bundles package of services would look like
Bronze – Basic Phone, service desk (L1), remote support, patch management, virus support
Silver – Bronze + L2 + L3
Gold – Silver + 24/7 emergency support (on call and onsite)

7. Some typical IT costs for Managed Services
Type of service
Costs
Remarks
Network Management
~$275/month per company
4 servers, 25 workstations = $2,520 / month or $30,240
Server Management
Between $165 and $250/month per server
Desktop Management
$ 35 – 50/month per desktop
First Level Resolution
Between 25 and 60% tickets
Tickets that should be closed in L1.
Average costs in each level of support
Level 1 (Service desk) – 22$
Level 2 (Desktop Support) – 62$
Level 3 – (Apps, N/w, NOC etc) – 85$
Field Support - 196$
Total IT cost is generally between 3 – 8 % of total turnover of a company
Managed Services cost is about 15 – 25% of total IT costs and about 60 – 70% of Opex cost
Usually Cost / productivity benefits passed on is between 3 – 10 % across a 3 year period in a phased manner

8. Benefit Realization
We enable clients unlock value from support functions
Information
Capabilities
Processes and systems
Culture
Technology
Organization structure
Reduced operational costs
Effective cost structures
Redirect funds for new development
Cost
Quality
Improved customer & user satisfaction
Better performance of service delivery
Improved reliability and consistency
Integrate process with
business goals
Increased business flexibility & agility
Competitive advantage
Faster and effective service delivery
Faster response and issue resolution
Accelerated change execution
Speed
Value
Sustained
higher value
Value
creation
Lower Value
Business oriented
Service oriented
Ineffective processes and practices
Transform IT
Reactive
Proactive
Predictive
Speed of execution
Speed of changes
Speed of response

9. Measurement of such products Whereas ISO 20000 emphasises on
Why ISO ?
ISO 9001:2008 – Salient Features
ISO/IEC 20000:2011 – Salient Features
ISO 9001 covers generic points that look at the well being of an organization in terms of
Policies,
Resource Management
Products and
Measurement of such products
Whereas ISO emphasises on
Designing of new or changed services
Service Delivery, Service Level Management
Continuity and Availability Management
Capacity Management
Budgeting and Accounting
Information Security Management
Business Relationship Management
Supplier Management.
Incident and Service Request Management
Problem Management
Configuration Management
Release and Deployment Management
All the above mentioned topics are part of ITIL and ISO and are needed to manage and maintain a good service desk.
Hence Tech Mahindra recommends Saudi Telecom Company to implement ITIL framework and certify for ISO / IEC standard.