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Gartner’s Industrialized Low-Cost IT Services (ILCS) by 2015

Gartner, at the Outsourcing & IT Services Summit 2011 in London, predicted that by 2015 ILCS will account nearly a third of the IT Services marketplace (30% of the overall market), and will generate revenues of $177 billion (you can dig further into this information here).

Since then all the outsourcing companies are working on it to fit this market space. The real challenge here is to change from managing tasks and productivity of technicians (professional services) to managing real IT Services delivered to Users.

ILCS are presented as managed, multitenant, ready-to-use IT services (infrastructure, applications or business processes).

The key in ILCS in the pricing model, defining price Per User Per Month or price Per Unit Per Month (PUPM).

So Users is the center of this delivery model. And, do we have user/customer service orientation in our service management operations?  
We need to implement standardized, automated, configurable and scalable services, but first we need to define who is the standard user. Then work to define what are the values and feeling we will transmit and improve about our services, and build an offering packed as a Service Catalog.
By 2015, Service Managers will be more important in Service Management organization to bridge customer/user expectations to the services delivered.

What is your vision about Industrialized Low-Cost IT Services (ILCS)?

Author: angelberniz (All Rights Reserved by the author).
Source: Original Text (based upon first hand knowledge).
Image courtesy of jannoon028 at
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