Capital Advisory
In todayโs rapidly evolving digital landscape, IT continues to be a critical enabler of business strategy, innovation, and resilience. Our recent work with clients has highlighted the essential role of IT service delivery โ ensuring that technology services are repeatable and scalable, yet responsive enough to accommodate changing business needs.
๐๐๐ฌ๐ฉ๐จ๐ง๐๐ข๐ง๐ ๐ญ๐จ ๐๐ง๐๐ซ๐๐๐ฌ๐๐ ๐๐ข๐ ๐ข๐ญ๐ข๐ฌ๐๐ญ๐ข๐จ๐ง ๐๐ง๐ ๐๐จ๐ฌ๐ญ ๐๐ซ๐๐ฌ๐ฌ๐ฎ๐ซ๐
With the increase in digitisation, particularly in asset intensive industries โ such as energy, mining, utilities, infrastructure development and manufacturing โ IT budgets are under ongoing pressure. There is a need to balance transformation and innovation, with a desire for greater IT efficiency and performance. In response to rising demands and ongoing cost pressure, IT leaders are re-evaluating their IT service delivery models. The goal is clear: uplift service quality and outcomes while reducing cost and / or containing cost growth, helping the business to remain competitive in an increasingly digitised environment. As a result, IT leaders are making bold decisions about how IT services are structured, delivered, and governed.
๐๐ข๐ฌ๐ค๐ฌ ๐จ๐ ๐๐ง๐๐๐๐๐๐ญ๐ข๐ฏ๐ ๐๐ ๐๐๐ซ๐ฏ๐ข๐๐ ๐๐๐ฅ๐ข๐ฏ๐๐ซ๐ฒ
The consequences of poor IT service delivery go far beyond user dissatisfaction. Ineffective IT operations can inflate costs, reduce productivity, delay critical decision-making due to inaccessible data, and impair customer service responsiveness. In some instances, these issues may even expose the business to regulatory, safety or financial risks. As digitisation becomes a key enabler, the cost of โgetting it wrongโ with IT service delivery has never been higher.
๐ ๐๐๐ง๐๐ฐ๐๐ ๐๐ก๐ข๐๐ญ ๐๐จ๐ฐ๐๐ซ๐ ๐๐ก๐๐ซ๐๐ ๐๐๐ซ๐ฏ๐ข๐๐๐ฌ ๐๐จ๐ซ ๐๐ซ๐๐๐ญ๐๐ซ ๐๐๐๐ก๐ง๐จ๐ฅ๐จ๐ ๐ฒ ๐๐ง๐ญ๐๐ ๐ซ๐๐ญ๐ข๐จ๐ง
An emerging trend we observe is core IT services residing in an enterprise shared service model. We see this alongside a wider trend towards renewing enterprise shared service models for HR, Procurement, and Finance in particular. While such models centralise service delivery to drive consistency, scalability, and cross functional collaboration, they also offer the opportunity for better technology integration and data driven decision making. By incorporating core IT services into a shared service model, organisations can better align these services with business need and define clear accountability for service outcomes. Cost allocation mechanisms can also be introduced to better understand the drivers of cost and support future efforts for increased efficiency. Business units can focus on IT to meet specific customer, product and business needs, drawing on IT shared services when needed.
๐๐๐ฒ๐ข๐ง๐ ๐ญ๐ก๐ ๐๐ซ๐จ๐ฎ๐ง๐๐ฐ๐จ๐ซ๐ค: ๐๐ฏ๐๐ฅ๐ฎ๐๐ญ๐ข๐ง๐ ๐ญ๐ก๐ ๐๐ฎ๐ซ๐ซ๐๐ง๐ญ ๐๐ ๐๐๐ซ๐ฏ๐ข๐๐ ๐๐๐ฅ๐ข๐ฏ๐๐ซ๐ฒ ๐๐จ๐๐๐ฅ
Before embarking on the journey to a shared service model, organisations are taking a step back to evaluate the current IT service delivery model. This evaluation is critical โ it identifies strengths, gaps, and improvement opportunities, informing the design of a future-fit IT service delivery model. Evaluation includes the service portfolio, service design, service cost structures, service performance, demand and capacity management, roles and responsibilities, data, tooling and automation, governance and the alignment between IT and business stakeholders. The evaluation also considers the balance between outsourced and insourced services.
๐๐ง๐๐ฎ๐ฌ๐ญ๐ซ๐ฒ-๐๐ฉ๐๐๐ข๐๐ข๐ ๐๐ ๐๐ก๐๐ฅ๐ฅ๐๐ง๐ ๐๐ฌ ๐ข๐ง ๐๐ฌ๐ฌ๐๐ญ-๐๐ง๐ญ๐๐ง๐ฌ๐ข๐ฏ๐ ๐๐๐๐ญ๐จ๐ซ๐ฌ
In asset-intensive industries the challenges around IT service delivery are particularly pronounced. These sectors often grapple with difficulties in attracting and retaining skilled IT talent, fostering meaningful engagement between IT and business units, and managing the growing demand for digital solutions without exceeding capacity. Moreover, these industries typically operate many complex legacy systems, that are not well integrated, making IT service delivery inefficient and costly. IT leaders in these industries are improving IT service delivery through automation, standardisation, and more rigorous performance monitoring, while considering the best future state IT service delivery model that balances scalability and efficiency, with adaptability and innovation.
๐๐๐ซ๐ญ๐ง๐๐ซ๐ข๐ง๐ ๐๐จ๐ซ ๐๐ฎ๐๐๐๐ฌ๐ฌ
Our Business Advisory team partners with clients to navigate complex challenges at the intersection of business and IT. We bring a commercially sound, pragmatic approach to business-IT challenges โ combining deep technical knowledge with a deep understanding of the industries we serve. We help organisations unlock value from their technology investments and build IT capabilities that support long-term business success.
๐๐๐ญโ๐ฌ ๐๐จ๐ง๐ญ๐ข๐ง๐ฎ๐ ๐ญ๐ก๐ ๐๐จ๐ง๐ฏ๐๐ซ๐ฌ๐๐ญ๐ข๐จ๐ง
If your organisation is facing similar challenges or is considering the next step in the evolution of its IT service effectiveness, we invite you to connect with our team. Weโd be pleased to share further insights and explore how we can support you.
