Outmaneuvering the crowded space of managed services providers:

March 31, 2016 11:04 am | Updated 5 years ago.

By Arup Gupta

The outsourcing industry moved through  the 1990s and early years of the 21st century from delivering projects to handing out the entire solution as “Managed Services”, where the vendor deploys its people, its processes and its technology to give out  solution required by the customer, without the customer having to worry about the details. Today almost all vendors are equipped to provide “Managed Services” and are doing so, thereby demonstrating a very little competitive advantage to the customers.

With the advent of digital technologies and the ease with which the solutions can be integrated now, especially in the cloud environment, the customers would like to have a say in what technologies are being used to deliver the solution required by them. The customer can further decide whether open source solutions can be used for appropriate functions so that he (the customer) does not have to invest in purchasing licenses or whether the solutions being used have open APIs so that newer modules can be integrated in future to cater to business growth and so on. In summary, the enterprise customers today are looking for “Differentiated Solutions” that will address their current and future business needs in a highly competitive business environment, rather than having the Managed Service Providers deliver atomic solutions for individual business needs.

The “Differentiated Solution” that can give a competitive edge to the vendors today needs to consist of methodologies like Agile methodology that enable quick turnaround and delivery of incremental functionality, ability to integrate best of breed solutions to address the business needs of the customers and most importantly demonstrate how the digital technologies available today is being leveraged to give an edge to customer’ business over its competitors. The “Differentiated Solution” can consist of best of breed Analytics solutions, big data analytics, mobility, 3D modeling and other UI to improve user experience and so on.