Implementing ITIL - Insight from Head of ITSM (Part 2: Outsourcing)

Written by admin on July 7, 2009

MJ:  This is part 2 of my talk with Pete Wilder, former Head of ITSM for the Asset Management division of a global investment bank (Part 1 discusses ITSM Education and Part 3 talks about a Tool Deployment and ITIL Adoption.  In this entry, Pete talks about the trials, tribulations, and lessons learned from migrating to and working with an outsourced, offshore Service Desk…

 

Story Highlights:

  • The Set Up:  An audit shows that the Service Desk isn’t up to par.  The decision is made to outsource.
  • Initial Turmoil:  End Users are frustrated that they can no longer pay a visit to Joe Helpdesk to get what they want.
  • How I addressed these Issues: SLM and an Incident Management Portal.
  • CSI:  Via the creation of an End User Forum.
  • Lessons Learned:  Pay close attention to how the outsourcer is encouraged to act via the chargeback model!

 

 

The Set Up

 

The IT department was fairly proactive in terms of how it managed itself.  They knew that from time to time, the business would ask, “Why does IT cost so much?”  As a global investment bank, the IT budget was in excess of two billion dollars per annum. 

 

So we did an exercise internally and compared ourselves to market.  Broadly speaking, we were efficient based on our size and quality provided.    That said, it was decided that we could be more efficient when it came to End User Platforms (end user computing; desktop, desk side support, service desk, email, etc.). 

 

The investment banking division was already being serviced by an outsourcer.  They went down that path because they felt we were behind in the remote access arena.  There were new technologies available that would decrease the Total Cost of Ownership (TCO) for desktops.  Now it was our turn to outsource.

 

 

Important Considerations:

 

·         We originally had regional helpdesks in Zurich, Singapore, New York, and London.  They handled desk side support, small projects, and some 2nd level support, in addition to typical level 1 incident management activities.  Therefore, we had to split out these various activities to different parts of the outsourcing organization.

·         I reduced the desk side support staff by 50% and transferred the remainder to the 3rd party’s organization.

·         The personnel employed by the 3rd party weren’t familiar with the organization and English wasn’t their native tongue.  

 

 

Initial Turmoil

 

While the IT organization officially told the business heads that we were moving into an offshore, outsourced Service Desk, the message didn’t trickle down to the end users abroad.  In theory, it should have, but it didn’t.

 

So the end users quickly found out that the Service Desk no longer existed in the way that they were used to.  Next, they realized that they didn’t like the new Service Desk.  They were used to walking a few yards, tapping Joe Helpdesk on the shoulder, and getting immediate service restoration. Now, they had to call the offshore Service Desk, log a ticket, and let the Service Desk Analyst try to resolve the incident remotely.  Typically, after 20 minutes or so, the Service Desk Analyst would say he needed to transfer the ticket to his colleague on-site who would be along shortly to assist.

 

In addition, certain services were breaking down.  For example, there was a new Access Management portal that allowed end users to gain rights to certain documents, application functionalities, etc.  However, due to various complications, the Asset Management division wasn’t able to gain entry to the portal.

 

 

How I Addressed These Issues

 

Tactically, I had to make sure that our services were restored.  I recognized which services were having the most issues and impact on the business and brought these to the attention of the outsourcer.  In response, additional training was provided to the Service Desk Agents.  In addition, I had to work with the end user community to define/rationalize the SLA’s around the various services that they were complaining about.

 

Over time, we developed a long list of  SLA’s for typical service requests.  I also created a portal where end users could go to track the status of their incident/service request.

 

 

Driving Outsourcing Excellence via Continual Service Improvement (CSI)

 

I set up a customer survey program, where a certain portion of end users would receive a customer satisfaction survey after their ticket was closed.  This information along with the Incident Management data served as the basis for CSI initiatives.

 

Tactically, I looked at the comments and worked with the outsourcer to address problematic trends via additional training and process improvements.  After awhile, the outsourcer became proactive about addressing these trends because they knew I would hold their feet to the fire at the end of the month!

 

Strategically, I worked with the IT governance team to develop a list of services that we were continuing to underperform on.  This list was built, in part, by the institution of an End User Forum whereby members of the business community could voice their concerns and ask questions.  The governance team would then create a formal report clarifying service improvement priorities and I’d work on that list with the outsourcer.  This did wonders for us when it came to improving communication/alignment with the business.

 

 

Lessons Learned

 

1.    We should have managed end user expectations more closely.  In fact, I think that the End User Forum should have been created prior to the outsourcing arrangement so that they could have their concerns voiced and become properly informed of how services were going to change.  This would have gone a long way in improving customer satisfaction post-implementation.

2.    We should have done more work when it came to verifying the effectiveness of the outsourcers tools/systems, like the Access Management portal.

3.    I learned a lot from monitoring the outsourcer.  In the future, I’m going to spend more time defining how the outsourcer will be paid.  For example, the outsourcer was paid for every request ticket closed.  We should have created the chargeback model to address only ‘successful’ transactions.

 

 

Click here for Part 1:  Introduction & ITSM Education

Click here for Part 3:  Tool Deployment & ITIL Adoption

 

 

Pete Wilder is a certified ITIL V2 Manager (Red Badge) ITSM professional with extensive cross industry experience covering Financial Services, Construction, Utilities and the Public Sector.

Results oriented and client focused with a long proven track record of service delivery and client satisfaction.  He is currently seeking a challenging opportunity to demonstrate his passion for providing service excellence and customer delight.

 

Michael Jagdeo (SCM, ITIL v2/v3) has an extensive background as an ITSM/ITIL enthusiast.  He has worked on placements in Singapore, Dubai, London, and across North America.  As Director at B Wyze Solutions, he manages relationships with clients like Johnson & Johnson, Toyota, Maple Leaf Foods, and the Government of Ontario.  Follow him on Twitter!

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