While attending the Gartner Sourcing Summit a few weeks ago, I was able to participate in a few sessions and talk to several attendees about their BiModal strategy – being able to keep their current systems operational, as they look for new ways to innovate with different technology capabilities. This can be a real struggle for IT departments having to task employees with responsibilities to keep the existing legacy infrastructure up and operational, while also trying to innovate with new applications, mobile and other capabilities that are a completely different delivery model.
What was of real interest to me in regards to Mode 2 is that is not just IT centric. As a service provider, from a Mode 2 perspective, it doesn’t just center on the technology aspects. It goes further for a business and starts to tie the relationship, deliverables, and overall structure around a business outcome. Truly aligning the Service Provider and the Client based on the Client’s new business growth or success of an application/business function. Providing incentives back to the Service Provider if they are able to help the client meet their business objectives, with SLAs and contract terms are centered on the business function and business outcome, not just traditional IT-specific metrics.
I think this direction has a lot of potential, because the client and service provider will be lockstep on the goals and overall objectives of the initiative, and both are being measured on the overall success of the client’s business. This will require some time and collaboration in working with clients to build the metrics and better understand the overall outcomes, but I do think this is a positive step from an overall partnership/value-add perspective.
What do you think? Would you find value in a Service Provider building SLA’s and being measured based on the same business metrics you are being measured on? Would you be willing to share in some of the success with incentives back to the Service Provider for exceeding those objectives? Would this model work for you? Share your thoughts below.